23andMe buys Lemonaid Health for $400 mn in telemedicine push

Direct-to-consumer DNA testing firm 23andMe Holding has agreed to buy Lemonaid Health for $400 million in a cash-and-stock deal, as it looks to expand into telemedicine.
23andMe in telemedicineLemonaid Health offers direct online access for a number of common conditions, from consultation through treatment. It also offers free and fast delivery of prescription medications.

“By starting with genetics as the foundation, we will give patients and healthcare providers better information about health risks and treatment,” 23andMe Chief Executive Officer Anne Wojcicki said in a statement.

Sunnyvale, California-based 23andMe is known for its genetic ancestry tests but also aims to develop treatments for diseases such as cancer and respiratory disorders.

The company said it would pay 25 percent of the total deal value in cash and the rest in shares.

23andMe went public in February through a blank-check firm, backed by Virgin Group founder Sir Richard Branson, in a deal that valued the merged entity at $3.5 billion.