23andMe Files for Bankruptcy, CEO Resigns

23andMe Files for Bankruptcy, CEO Steps Down

23andMe, a prominent genetics testing company, has initiated Chapter 11 bankruptcy proceedings within the United States. This action is being undertaken to facilitate the sale of the company’s assets.

Simultaneously with this announcement, Anne Wojcicki, the co-founder and current CEO, revealed her intention to depart from her role. She plans to submit an independent bid to acquire 23andMe.

Strategic Restructuring

According to Mark Jensen, chair and member of the Special Committee of the Board of Directors, a court-supervised sale process represents the optimal strategy for maximizing the company’s value.

The company anticipates that this process will aid in addressing existing operational and financial difficulties. These include further cost reductions and the resolution of outstanding legal and lease obligations.

Commitment to the Mission

“We firmly believe in the dedication of our employees and the inherent worth of our assets,” the statement continued. “It is our hope that this process will ensure the continuation of our mission: empowering individuals to access, comprehend, and benefit from genomic insights for the betterment of customers and patients.”

CEO's Perspective

Wojcicki expressed her disappointment regarding the decision to pursue Chapter 11 and the rejection of her initial bid in a post on X. However, she affirmed her support for the company.

To position herself favorably as an independent bidder, Wojcicki has resigned from her position as CEO.

Recent Challenges

The company has encountered significant headwinds since its initial public offering in 2021. 23andMe is widely recognized for its direct-to-consumer saliva-based genetic ancestry tests.

Despite this recognition, the company has struggled to achieve profitability, resulting in a dramatic decline in its market capitalization. It has fallen by over 99% from a peak valuation of $6 billion.

Data Breach and Lawsuit

Further compounding these challenges, 23andMe experienced a substantial cyberattack in 2023. This breach compromised the data of approximately 7 million customers.

The stolen data included sensitive information such as users’ genetic predispositions and ancestry reports. A $30 million settlement was reached in September 2024 to resolve a lawsuit stemming from this data breach.

Following the settlement, Wojcicki indicated she was exploring the possibility of taking the company private.

Current Market Value

As of the latest reports, 23andMe’s market value stands at approximately $48 million. The company’s stock is currently trading at $1.79 per share.