Consumer genetics company 23andMe announced Friday it has signed a definitive agreement to acquire telehealth and online prescription platform Lemonaid Health for $400 million.
The price tag, subject to downward adjustments, will be made up of 25% in cash and 75% in stock. The companies expect the acquisition to close by the end of the year.
Founded in 2013 by Co-Founders Ian Van Every and Paul Johnson, Lemonaid Health offers patients direct access to the care they need, from consultation through treatment nationally across the U.S. The company leverages evidence-based guidelines and the most up-to-date clinical protocols to provide quality care for less than typical co-pays. In just a few minutes, patients are able to interact with a U.S.-licensed doctor or nurse practitioner for conditions like anxiety and depression, urinary tract infections (UTIs), birth control, hair loss, hypothyroidism, erectile dysfunction, genital herpes and sinus infections. Patients are also offered free and fast delivery of prescription medications through the platform to speed treatment.
For $25 per visit, patients can request prescriptions by filling out a questionnaire and attaching a picture for the doctor to write out the prescription, and then have it automatically sent to a locally preferred pharmacy within a 2-hour turnaround time. The visit cost is much cheaper than a co-pay, and an email summary of the care provided is sent to the patient’s primary care doctor.
As part of the acquisition, Paul Johnson, CEO and Co-Founder of Lemonaid Health, will become the General Manager of the 23andMe consumer business, and in that role, will continue to run the Lemonaid Health services. Ian Van Every, Managing Director, U.K. and Co-Founder of Lemonaid Health, will manage and grow operations in the U.K.
“We believe that by combining Lemonaid Health’s telemedicine platform, including its online team of medical professionals and its pharmacy services, with our consumer business, we are taking an important step in transforming the traditional primary care experience and making personalized healthcare a reality,” said Anne Wojcicki, CEO and Co-Founder of 23andMe. “By starting with genetics as the foundation, we will give patients and healthcare providers better information about health risks and treatments, opening up the door to prevent as well as better manage disease. Lemonaid Health’s focus on the patient and its philosophy of delivering individualized care fits perfectly with our mission of empowering people to take control of their health.”