DNA testing company 23andMe files for bankruptcy protection, CEO...
Genetics testing company 23andMe has filed for Chapter 11 bankruptcy protection in the U.S. to initiate the sale of its assets. Alongside the announcement, the company’s co-founder and CEO, Anne Wojcicki, separately said she is leaving to become an independent bidder for 23andMe.
“After a thorough evaluation of strategic alternatives, we have determined that a court-supervised sale process is the best path forward to maximize the value of the business,” Mark Jensen, chair and member of the Special Committee of the Board of Directors, said in a statement.
“We believe in the value of our people and our assets and hope that this process allows our mission of helping people access, understand, and benefit from the human genome to live on for the benefit of customers and patients.”
Anne Wojcicki's Departure
“The 23andMe Special Committee released news today indicating their plan to take the company through the Chapter 11 process. While I am disappointed that we have come to this conclusion and my bid was rejected, I am supportive of the company, and I intend to be a bidder. I have resigned as CEO of the company so I can be in the best position to pursue the company as an independent bidder,” Wojcicki said in a post on X.
Company Troubles
The company has had a troublesome few years after it went public in 2021. Best known for its saliva-based test kits that offer customers a glimpse into their genetic ancestry, the company has seen its market capitalization plummet more than 99% from a peak of $6 billion after it failed to turn a profit.
Then in 2023, it suffered a massive cyberattack in which the data of its nearly 7 million customers, including users’ genetic predisposition and ancestry reports, was stolen by hackers.
23andMe admits major cyberattack went undetected for months
In September 2024, the company settled a lawsuit related to the data breach by paying $30 million, and soon afterward, Wojcicki said she was exploring taking the company private.
Current Status
At the time of writing, the company’s market value was around $48 million, with its stock trading at $1.79.
