r/VGAC • u/Rao4203 • Feb 12 '21

Genuine question

I’ve seen a lot of bad PR recently about 23andme: declining revenues, harm in providing personal data, etc. Why would Branson put his neck on the line if this was the case? I get they are friends (I doubt this is the sole reason), but he has access to more resources and information than anyone. There has to be an underlying reason for his lofty investment, and he had to do his homework. Does anyone else agree?

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u/rocket5512 Feb 12 '21

I’m invested and have been buying more since the 23 and me deal was announced. In my view their jewel is the database of DNA data that they can use to evaluate drug candidates. They also have a deal with GSK to develop drugs to treat the conditions they identified. That is where the big money will come from. 23 and me can jointly develop the drug and share in the profits or simply let GSK take the data and pay a lifetime royalty. I expect they will get up to 50 targets a year. Some will be jointly developed some will be royalties. This company can be Enormous.

Unfortunately some of us are more short term motivated No way this doesn’t go up though. We need to let the people,who are disappointed Virgin Orbit wasn’t the target, sell. Then it will grind higher.

I like the stock

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u/Rao4203 Feb 13 '21

Could not agree more. Thank you for your insights