23andMe and GlaxoSmithKline (NYSE:GSK) have extended their partnership with a non-exclusive data licensing agreement that allows GSK to use 23andMe's database for drug target discovery and other research for a year. The renewed agreement includes a $20 million upfront payment to 23andMe, along with access to further analyses of their data.
The collaboration between the two companies has resulted in approximately 50 programs over the past five years, as stated by Anne Wojcicki, CEO of 23andMe. The new agreement terms stipulate that 23andMe will provide GSK with de-identified summary data from global genome- and phenome-wide analysis of their database. GSK will retain ownership of any new drug discovery programs initiated during this period. However, 23andMe may be eligible for downstream royalties under certain uses of the database by GSK.
A significant part of this amendment is 23andMe taking the royalty option on three programs previously initiated by the two companies. Adam Auton, Vice President of Human Genetics at 23andMe, emphasized their continuous growth in the research database and improvements in imputation technology and utilization of whole genome sequencing data. He also highlighted their expansion in deep phenotyping, artificial intelligence, machine learning, rare disease research, and developing recontactable cohorts in specific disease areas.
GSK's investment of $20 million secures a year's access to 23andMe's anonymized DNA database, which is only rivalled by Ancestry.com and the Chinese government. This data has expedited the development of a cancer drug that inhibits CD96, an immune response protein, within four years—significantly faster than the seven-year industry average.
Under the new agreement, GSK will have exclusive ownership of all discoveries made using this data. This marks a shift from previously jointly pursued drug targets. Meanwhile, 23andMe stands to earn royalties on some projects. CEO Anne Wojcicki emphasized their platform's ability to consistently generate novel therapeutic development insights and their mission to transform health at scale. In addition to conducting clinical trials for a monoclonal antibody drug and a $1,188 DNA-sequencing product, 23andMe retains the right to license its data to other pharmaceutical companies.
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