23andMe to Launch Telehealth Weight-Loss Program in August
A Shift in Strategy
23andMe, the struggling DNA-testing firm, is shifting its strategy by launching a telehealth weight-loss program in August while simultaneously reducing the size of its internal drug development group.
A Lucrative Market
This move reflects 23andMe's recognition of the growing obesity epidemic and the potential of the weight-loss market. The company's stock has been in decline since its 2021 blank-check merger, and this new program may be seen as an attempt to diversify its revenue streams.
GLP-1 Drugs
The weight-loss program will focus on GLP-1 drugs, which have been shown to have health benefits beyond diabetes and weight loss. 23andMe is also launching a large-scale study to investigate the genetics behind the effectiveness of these drugs.
Mounting Evidence
As the evidence for the benefits of GLP-1 drugs continues to mount, 23andMe's new program may prove to be a successful venture. However, the company will need to overcome the challenges associated with scaling a telehealth program and competing with established weight-loss providers.
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