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Life Sciences: Genetic Testing To Be A Boom To Baby Boomers

By Marc Davis, Managing Editor

When the stock market recovers (as it always does), investors will be scanning the horizon for the next 'Big Thing.' When the last bull market began its ten-year rally in 1991, biotechnology stocks were highly favored. However, the love affair didn't last long. Investors soon grew tired of waiting around as the Food and Drug Admistration dithered over companies' applications to get their products to market.

Then came along the Dot Com boom, as well as other high tech sensations such as broadband and wireless communications providers. Well, I can tell you right now that the next stock market phenomenon won't be high tech, which is still suffering from a massive post-90s hangover. It always seemed to me that the media-driven mantra of high tech was comparable to a well-known 90s pop song that proclaimed "the future's so bright, you gotta wear shades." Where's the hype now? Instead, so many of those multi-billion dollar, high-flying companies are dead or drowning in debt. And their investors are crying the blues.

So, where do we go from here? My bet is that life sciences will be the next 'Big Thing.' The recent announcement that geneticists are close to solving the human DNA puzzle is heralding in a new era in medical science. By understanding what makes our bodies 'tick,' all sorts of 21st century medical breakthroughs are now within our reach. So much will soon be possible, ranging from cloning new body parts to preventing the onset of inherited diseases or maximizing the growth potential of livestock (and even people).

One interesting breakthrough that has already arrived is consumer-oriented genetic testing on-demand. And this is now presenting great marketing opportunities for those that are quick to seize the initiative -- companies like One Person Health. Inc. Though it is a small start-up venture, the company's major selling point is that it has secured an exclusive licensing agreement to market leading-edge genetic testing technology. In other words, One Person Health is primed for a product rollout without the burden of having to recoup millions of dollars in R&D costs. Instead, One Person Health has formed strategic allegiances with leading genetic testing companies, as well as university medical research departments. Ultimately, the company has set its sights on a NASDAQ listing, which (if successful) would significantly raise its public profile.

Notably, One Person Health aims to carve a niche for itself by offering consumers a simple, non-invasive test kit that uses a saliva swab to determine their individual genetic profiles. From there, the company will be able to customize supplement therapies for a whole range of health issues. Initially, the company will focus on the huge market for preventative medicine by way of addressing vitamin and mineral deficiencies. Subsequent therapies will also target the areas of injury recovery, detoxification, weight loss and enhancing athletic performance.

One Person Health is hoping to capitalize on the emergence of the science of Nutrigenomics. This is the study of the relationship between nutrient intake and how our genes function. For example, proponents of this new science argue that a person who has a genetic flaw that inhibits the effective processing of vitamin B may make that person more susceptible to a whole range of ailments. They might include liver disease, problems with fetal development during pregnancy, arthritis, depression, and PMS, to name a few.

This New Age enterprise is the brainchild of a Canadian venture capitalist, George Fleming, who has made a name for himself as a business innovator and pioneer. For instance, he was an early and successful player in the Internet revolution.

"In the case of One Person Health, two major trends drove the creation of this business model....the amazing desire of Baby Boomers to remain healthy and the personalization that genetic testing implies. Also, this is a timely venture that solves a particular problem that is not being adequately addressed by the business community. And of course, this is a business that has significant untapped potential," he cites as the key to succeeding.

This time around, Fleming is in good company. A recent survey revealed that 73 per cent of Fortune 500 CEOs listed "customized products and services for each buyer" as the "most winning strategy for the 21st century." And the burgeoning nutrition/health sector makes for an ideal business application of this philosophy. Indeed, Baby Boomers and other health-conscious members of society are increasingly taking charge of their health and welfare by embracing the idea of preventative medicine. According to the research firm, The Hartman Group, the U.S. wellness market has grown to a staggering $66 billion per year, especially among Baby Boomers.

To date, the largest sector of the wellness industry involves the marketing of nutritional supplements such as antioxidant-rich vitamins and minerals. Sales of these products to Baby Boomers, alone, are growing by an estimated 20 per cent per annum. However, this booming business is seen as a threat by major pharmaceutical companies. That's why their powerful lobby groups spend tens of millions of dollars every year to ensure that their interests are well protected by U.S. lawmakers. Hence, the wellness industry is continually stymied in its efforts to promote itself and the benefits of natural health remedies. This makes it difficult to get accurate information on any health supplements. Manufacturers of products like St. John's Wort (a natural antidepressant) and Echinacea (a treatment for head colds) are not even legally permitted to advertise the benefits of the products that they sell. So, how then is the consumer meant to make informed decisions about what products to take and in what quantities? The drug companies would rather you don't. Instead, they want you to take a reactive, rather than proactive, approach to your health. They then get rich by encouraging you to pump their (often-expensive) antibiotics into your system.

Here's where One Person Health aims to bridge the information gap and take the nutritional supplement business to the next level. The company's genetic testing will allow for the prescribing of customized supplement therapies to suit the unique needs of each individual. Ideally, these therapies can be used to help offset potential disease risks, whether they are inherited or environmental, or more likely, a combination of both. Apparently, many people have genetic profiles that can hint at a predisposition to a whole range of major illnesses. They include cardiovascular disease, cancer, arthritis, sexual dysfunction, neuro-degenerative disorders such as Alzheimer's and a host of other aging-related conditions. One Person Health suggests that it may be able to identify such genetic defects, particularly those that impair metabolic activity and thereby increase the risk of disease.

One Person Health is gambling that an initial segment of up to five million upwardly mobile, health-conscious North Americans will commit to one or two year subscriptions for customized supplement therapies. In essence, each client will be expected to pay about U.S. $100 per month for at least 12 months. First, the test kit swab samples are examined to determine each client's unique genetic profile. Then, each client gets a customized program of multi vitamins, as well as additional supplements to address any specific nutritional deficiencies that he or she may have. This subscription-based revenue model will allow One Person Health to subsidize the relatively high up-front cost of genetic testing with the locked-in earnings from each customer's monthly supplement payments. It's a smart strategy that's comparable to a standard cellular phone contract. The inherent risk, however, is that many consumers may not be ready to commit to an initial outlay of U.S. $1,200 per year for leading-edge therapies that have yet to gain widespread acceptance. Other target users such as health professionals may also choose a 'wait and see' approach.

Nonetheless, millions of Baby Boomers are already spending that kind of money on nutritional supplements without the benefit of genetic profiling. So, a highly targeted marketing campaign will likely win many of them over to the rationale of a more personalized, science-driven approach to taking supplements. And beginning in 2003, One Person Health also expects to make inroads into the markets for weight loss management, injury repair and sports nutrition (especially for professional athletes). Thus, the company is poised to tap into several extremely lucrative markets. Match that with the competitive advantage of being the first North American company to mass market personalized nutritional therapies. Then the dynamics are in place to make One Person Health a potential stock market front-runner in 2003.

For more information on One Person Health Inc.,
contact info@onepersonhealth.com