23andMe Files for Bankruptcy: CEO to Bid Independently
Genetic testing giant 23andMe has filed for Chapter 11 bankruptcy protection in the United States, signaling a significant shift for the company. This move is intended to facilitate the sale of its assets, marking a critical moment in its history.
Adding to the developments, Anne Wojcicki, co-founder and CEO, announced her departure to pursue an independent bid for the company. This decision follows the rejection of her initial bid, highlighting her continued belief in 23andMe's potential.
Mark Jensen, chair of the Special Committee of the Board of Directors, stated that the court-supervised sale process is the "best path forward" to address the company's operational and financial challenges. The aim is to reduce costs, resolve legal issues, and maintain the company's mission of providing access to and understanding of the human genome.
Wojcicki expressed her disappointment but affirmed her support for the company, emphasizing her intention to remain a bidder. Her resignation as CEO allows her to navigate the bidding process independently.
Challenges Leading to Bankruptcy
Since going public in 2021, 23andMe has faced numerous challenges. Despite its popularity for saliva-based ancestry tests, the company struggled to achieve profitability. Its market capitalization plummeted by over 99% from a $6 billion peak.
A significant data breach in 2023 compromised the data of nearly 7 million customers, leading to a $30 million settlement in September 2024. This incident further compounded the company's difficulties. At the time of the bankruptcy filing, 23andMe's market value stood at approximately $48 million, with its stock trading at $1.79.
Source: TechCrunch