The company is collapsing.
23andMe, the genetic testing company once valued at $6 billion, filed for Chapter 11 bankruptcy protection in Missouri federal court on Sunday. CEO Anne Wojcicki resigned from her role but will continue to serve on the board. Joseph Selsavage, the company’s CFO, will step in as interim CEO during this transition. Wojcicki expressed accountability for the company’s challenges while maintaining confidence in its future in a statement shared on social media.
The company, founded by Wojcicki in 2006, became widely recognized for its at-home DNA testing kits, allowing customers to learn about their genetic backgrounds and family histories. After going public in 2021 through a merger with a SPAC, 23andMe was initially valued at around $3.5 billion, though its stock has struggled in recent years. The company faced difficulties in generating consistent revenue and expanding its research and therapeutics divisions.
In light of the bankruptcy, 23andMe plans to solicit bids for its assets over the next 45 days, contingent on court approval. The company has estimated assets and liabilities between $100 million and $500 million. Wojcicki also indicated her intention to pursue the company as an independent bidder.
In addition to its financial troubles, 23andMe has been embroiled in privacy concerns, particularly after a hack in October 2023 exposed the personal information of nearly 7 million customers. The California Attorney General recently advised residents to delete their genetic data from the platform, citing the security breach. Despite these issues, 23andMe assured customers that its data management practices would remain unchanged during the bankruptcy process.
The bankruptcy filing is part of the company’s attempt to reorganize and address its financial challenges while continuing its operations. It remains to be seen how this process will affect its future prospects and reputation in the genetic testing industry.
