Genetic testing company 23andMe, once valued at $6 billion, has filed for Chapter 11 bankruptcy protection. The filing took place in a Missouri federal court on Sunday night, marking a dramatic fall for the at-home DNA testing pioneer.
In a major leadership shake-up, co-founder and longtime CEO Anne Wojcicki has stepped down, though she will stay on the board. Chief Financial Officer Joseph Selsavage will serve as interim CEO. Wojcicki addressed the situation in a post on X, acknowledging the company’s struggles while expressing continued belief in its mission.
Founded in 2006, 23andMe gained rapid popularity through its DNA test kits that helped users explore ancestry and genetic traits. The company went public in 2021 via a SPAC deal valued at $3.5 billion. But since then, its stock has plummeted, and its market cap has now fallen below $20 million.
The company’s financial troubles stem from challenges in generating steady revenue and expanding into research and therapeutics. In recent months, a special committee rejected Wojcicki’s proposals to take the company private. Now, 23andMe plans to sell its assets through a court-approved process, soliciting qualified bids over the next 45 days. Wojcicki intends to remain involved as an independent bidder.
The company listed estimated assets and liabilities between $100 million and $500 million each. Compounding the financial strain are ongoing privacy concerns. In October 2023, hackers accessed data from nearly 7 million users. Last week, California’s Attorney General urged residents to consider deleting their genetic data from the platform.
Despite the turmoil, 23andMe says it will continue operations without changes to data storage or privacy practices. Wojcicki concluded her statement by reaffirming her commitment to data transparency and consumer choice.
