Genetic testing company 23andMe has filed for bankruptcy, leaving the future of the company uncertain.
The company, which maintains a database with the genetic information of over 15 million people, filed for Chapter 11 bankruptcy proceedings on Sunday.
Newsweek contacted 23andMe for more information on the situation via email.
The Context
23andMe is best-known for its at-home DNA testing kits that provide detailed information about ancestry and health predispositions, but the company has faced mounting challenges in the last few years. Despite its initial success and a peak market valuation of approximately $5.8 billion in 2021, 23andMe’s market capitalization has since dropped to under $50 million.
What To Know
In a statement addressing the bankruptcy filing, Mark Jensen, Chair and member of the Special Committee of the Board of Directors, said that the decision was “strategic,” saying: “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.”
Following the announcement, the company’s co-founder and CEO Anne Wojcicki resigned from her role. Since April of the previous year, she had been pursuing the acquisition of all outstanding shares not already under her control, following a series of unsuccessful attempts to take the company private.
These efforts were met with resistance from the company’s board, culminating in the resignation of all seven independent directors in September 2024, but Wojcicki has said that she will continue to attempt a private approach to the company, writing on social media that she had resigned to pursue the company “as an independent bidder.”
In a blog post to customers, 23andMe said that the move was designed to help the company continue its work, its statement reading: “Through this process, we will seek to find a partner who shares our commitment to customer data privacy and allows our mission of helping people access, understand and benefit from the human genome to live on.
A sign in front of the 23andMe headquarters on February 01, 2024 in Sunnyvale, California. A sign in front of the 23andMe headquarters on February 01, 2024 in Sunnyvale, California. Getty Images
“Importantly, this step allows us to continue operating our business while we chart the path forward.”
In a statement given to Newsweek, a spokesperson for 23andMe said: “There are no changes to the way the Company stores, manages, or protects customer data.
“Any buyer will be required to comply with applicable law with respect to the treatment of customer data and any transaction will be subject to customary regulatory approvals, including, as applicable, approvals under the Hart-Scott-Rodino Act and the Committee on Foreign Investment in the United States.”
What People Are Saying
23andMe CEO Anne Wojcicki said in a post on social media that she would pursue the company as an independent bidder: “If I am fortunate enough to secure the company’s assets through the restructuring process, I remain committed to our long-term vision of being a global leader in genetics.”
What Happens Next
Any customer at 23andMe can have any data being held about them removed upon request. The company has stated that the way it handles data will not change.
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