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DNA testing business strategy: 23andMe, Ancestry, Helix - Business Insider

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The genetic testing business is stuck in a slump. We spoke to industry giants Ancestry and 23andMe about how they're preparing for a comeback.

Still, for years, it seemed like interest in genetic testing was only increasing. But this year, the companies are starting to run into a slowdown.

As demand recedes, consumer genetics companies have spent the past year grappling with what comes next. Genealogy giant Ancestry has been moving into health, a market it hadn't previously touched. 23andMe has been reckoning with evolving its business model beyond a one-time test. Helix, a company that had ambitions of being the "app store" for genetics, has been pivoting away from the consumer market toward health systems willing to foot the bill for their patients.

"My personal view is that the ancestry segment itself, the genealogy segment, is not something that everyone is going to want. We may be seeing a point where most people who are interested in that have gotten in already," said Justin Kao the cofounder and senior vice president of business development and strategy at Helix. "I think a lot of players in the field are looking for what's next.

 

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