The Market Increasing For Home DNA Kits
The rising popularity of home DNA kits is reaching fever pitch levels. People around the world are scrambling to uncover the secrets of their ancestry, ethnicity, and familial relationships through DNA testing. The widespread availability of commercially viable home DNA kits has established a viable industry that investors are now eyeing with optimism. Even at a time where stock-market volatility threatens to upend all the gains of 2018, many investors are optimistic about the prospects in store for DNA testing services such as Living DNA, FamilyTreeDNA, Ancestry.com, MyHeritage, and 23andMe. Many of these companies have been in operation for well over a decade, and their user base now includes millions of registered members around the world.
Who are the leading DNA testing companies on the market?
Burgeoning interest in home DNA kits has fueled speculation that this industry is set for a boom period in 2019. For example, Ancestry.com LLC is a family history research company which provides online sources for local history, census records, military, vital info, and family records. This private company has yet to make moves to list an IPO on the NASDAQ, but it may be mulling a more opportune time, given the sharp losses on US bourses which have ensued in recent months. According to leading DNA kits comparison site, CompareDNAKits.com strong growth trends are now evident with surging demand on a global scale. Besides Ancestry.com, 23andMe and MyHeritage are the top 3 dominating the market.
23andMe Mulling IPO?
23andMe is also involved in genetic testing, with home DNA kits provided to clients. This company is located in Mountain View, California. To date, 23andMe has received massive funding to the tune of $791 million from leading tech companies, venture capitalists, angel investors and health science companies. Notable investors include Johnson & Johnson, Google Ventures, Mpm Capital, and Illumina. With such tremendous interest in this private company, there is a chance that the Board of Directors will consider going public and listing on Wall Street. The San Francisco times ran a story in 2015 suggesting that an IPO was imminent. While this has not happened yet, it remains a viable possibility, given the windfall investments that typically follow public listings. This private company is classified as a commercial services enterprise in the consumer discretionary sector. It is headed by the co-founder and CEO Anne Wojcicki.
MyHeritage is a private company providing clients with DNA home test kits to gauge their ethnicity and family tree. It’s also an industry-leading player in the ancestry field, with a strong social media sharing platform. In September 2018, MyHeritage partnered with WH Smith for the distribution of its DNA kits to clients. This UK partnership has fast-tracked the availability of home DNA test kits throughout Europe, and includes bundle packages for premium members. As one of the world’s leading genealogists services companies, MyHeritage already boasts 9 billion historical records, comprising a wide range of tools for discovering ethnicity, with integrated social options and records. The company CEO and founder, Mr Gilad Japhet built his private enterprise into a dominant market player.
Why Is the Public Interested in DNA Testing?
DNA test kits have been on the market for several years, but the prohibitive costs have prevented widespread use of these types of services. DNA home testing kits typically use a cheek swab to test ethnicity, ancestry, genealogies and so forth. In 2017, the industry generated net profits of $73 million in the USA alone, $50 million in Japan, and profits are expected to double within the next four years. Consumers have been exposed to DNA testing through TV shows like Forensic Files, and paternity testing on daytime talk shows like Maury. Now that costs have come down, demand has spiked. Users don’t need to visit a laboratory, or a doctor’s office to get these tests done – everything can be completed from the comforts of home. As with any industry that goes through a dramatic surge in demand, talk blossoms about the possibility of public listings on the stock markets. Time will tell.