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23andMe Stock Jumps as Quarterly Loss Narrows, Revenue Rises

The consumer genetics and research company 23andMe narrowed its fiscal-second-quarter loss on a 6.5% rise in revenue.

Shares of 23andMe  (ME) - Get 23andMe Holding Co Class A Report advanced Thursday a day after the consumer genetics and research company reported that it narrowed its second-quarter loss on 6.5% higher revenue.

For the quarter 23andMe reported a net loss of $16.5 million, or 4 cents a share, narrowed from a loss of $36.1 million, or 38 cents a share, in the year-earlier quarter.

Revenue rose 6.5% to $55.2 million from $51.8 million in the year-earlier period.

Shares of the Sunnyvale, Calif., company at last check rose 14% to $13.08.

“We made good progress on advancing our consumer health services segment with product enhancements, such as new genetic health risk reports and the acquisition of Lemonaid Health,” Chief Financial Officer Steve Schoch said in a statement.

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The rise in 23andMe's revenue was driven by higher Personal Genome Service kit sales and subscriptions, a service that is still in its first year after launch, the company said.

"With the addition of telemedicine and pharmacy services to our Personal Genome Service products and services, we significantly advance our efforts to provide consumers with convenient access to personalized, proactive and genetically-based health services,” Co-Founder and Chief Executive Anne Wojcicki said in a statement.

During the quarter, 23andMe completed the acquisition of Lemonaid Health, an on-demand platform for accessing medical care and pharmacy services online.

"We are also pleased with the progress of our therapeutics pipeline. Our partner, [GlaxoSmithKline  (GSK) - Get GlaxoSmithKline Plc Report], expects to report clinical data from the CD96 program in 2022. 

"In addition, we expect to start a clinical trial with our wholly owned P006 program by the end of fiscal year 2022," Wojcicki added.

Consumer services revenue formed the bulk of total revenue at 81% and research services revenue, just about all derived from the collaboration with GSK, accounted for 19%.