Approximately 15 million people have given their DNA to 23andMe|Nosha|CC BY-SA 2.0
Genetic testing company 23andMe filed for bankruptcy on Sunday to sell its assets while continuing operations. The company assured customers that their data remains secure.
Co-founder and CEO Anne Wojcicki, who is resigning from her position but will continue to be on the board, has been trying to buy the company back, though she hasn’t managed to do so thus far.
She previously attempted to take the company private but failed. CFO Joe Selsavage will serve as interim CEO.
Wojcicki had pushed for a buyout since April 2023 but was repeatedly rejected by the board.
Her latest bid valued 23andMe at $11 million, far below its current value of $50 million. The company had a $3.5 billion market capitalization in 2021.
23andMe had already cut 40% of its workforce—around 200 employees—and halted all therapy development as part of a restructuring plan announced in November.
The company struggled because customers typically take a DNA test once. Efforts to introduce subscriptions and license genetic data failed, while rising costs made drug development too expensive.
Data privacy concerns
Over 15 million people have given their DNA to 23andMe, raising concerns about data ownership post-bankruptcy. California’s Attorney General reminded residents that they could delete their information.
A court will review 23andMe’s Chapter 11 plan, allowing the company to solicit bids over 45 days. If multiple offers emerge, an auction will take place. Any buyer must comply with data protection laws.
Meanwhile, 23andMe faces potential NASDAQ delisting and ongoing lawsuits, adding to its challenges.