Consumer genetics and research company 23andMe Holding Co. (ME) recently revealed that it has signed a definitive agreement to acquire medical care and pharmacy services on-demand platform Lemonaid Health, Inc. for $400 million (75% in shares of 23andMe Class A Common Stock and 25% in cash). The deal is likely to close by the end of 2021.
Following the news, shares of the company jumped 5.2% to close at $10.87 on Friday.
With this acquisition, 23andMe will gain access to Lemonaid Health’s efficient and affordable platform, which provides seamless online access to a licensed doctor or a nurse practitioner for consultation and treatment, with free and fast delivery of prescription medications through the platform.
The CEO of 23andMe, Anne Wojcicki, said, “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. 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.” (See 23andMe stock chart on TipRanks)
See Top Smart Score Stocks on TipRanks >>
Two months ago, Credit Suisse analyst Tiago Fauth initiated coverage on the stock with a Buy rating. The analyst’s price target of $13 implies upside potential of 19.6% from current levels.
The Wall Street community is cautiously optimistic about the stock and has a Moderate Buy consensus rating based on 2 unanimous Buys. The average 23andMe price target of $12.50 implies that the stock has upside potential of 15% from current levels.
23andMe scores a 9 out of 10 from TipRanks’ Smart Score rating system, indicating that the stock has strong potential to outperform market expectations. Shares have gained about 10.9% over the past year.
Related News:
Qualtrics International Beats Q3 Expectations and Raises FY2021 Outlook
Cambium Networks Lowers Q3 Guidance; Shares Plunge 16.1%
BJ’s Restaurants Posts Weak Third Quarter Results
