23andMe files for bankruptcy, Anne Wojcicki steps down as CEO
On Sunday evening, 23andMe filed for Chapter 11 bankruptcy protection in a federal court in Missouri.
With immediate effect, Anne Wojcicki has stepped down as CEO, but she will continue to serve on the board.
The filing follows a difficult time for the genetic testing company, during which it has experienced a cyberattack, failed to establish sustainable companies, and struggled to produce consistent revenue.
23andMe, a struggling genetic testing company
was worth $6 billion, filed for Chapter 11 bankruptcy protection on Sunday evening in a federal court in Missouri.
With immediate effect, Anne Wojcicki, the company's CEO, has stepped down from her position; however, she will continue to serve on the board. According to a filing with the U.S. Securities and Exchange Commission, 23andMe's chief finance and accounting officer, Joseph Selsavage, will act as interim CEO.
Wojcicki posted on X early on Monday morning, saying, "We have had many successes, but I equally take accountability for the challenges we have today." "23andMe has undoubtedly faced real challenges as a result of its changing business model, but I remain steadfast in my belief in the company and its future."
Regarding the filing, 23andMe chose not to speak further.
In 2006, the former billionaire co-founded 23andMe, which quickly gained popularity thanks to its at-home DNA testing kits that provided consumers with information about their genetic profiles and family histories.
Through a merger with a special purpose acquisition company, which at the time valued 23andMe at about $3.5 billion, the five-time CNBC Disruptor 50 business went public in 2021.
Due to the company's struggles to establish sustainable research and pharmaceuticals companies and create recurring revenue, 23andMe's stock has largely been in free fall in recent years. The company's market capitalization is less than $20 million as of Monday's closure.
With immediate effect, Anne Wojcicki has stepped down as CEO, but she will continue to serve on the board.
The filing follows a difficult time for the genetic testing company, during which it has experienced a cyberattack, failed to establish sustainable companies, and struggled to produce consistent revenue.
23andMe, a struggling genetic testing company
was worth $6 billion, filed for Chapter 11 bankruptcy protection on Sunday evening in a federal court in Missouri.
With immediate effect, Anne Wojcicki, the company's CEO, has stepped down from her position; however, she will continue to serve on the board. According to a filing with the U.S. Securities and Exchange Commission, 23andMe's chief finance and accounting officer, Joseph Selsavage, will act as interim CEO.
Wojcicki posted on X early on Monday morning, saying, "We have had many successes, but I equally take accountability for the challenges we have today." "23andMe has undoubtedly faced real challenges as a result of its changing business model, but I remain steadfast in my belief in the company and its future."
Regarding the filing, 23andMe chose not to speak further.
In 2006, the former billionaire co-founded 23andMe, which quickly gained popularity thanks to its at-home DNA testing kits that provided consumers with information about their genetic profiles and family histories.
Through a merger with a special purpose acquisition company, which at the time valued 23andMe at about $3.5 billion, the five-time CNBC Disruptor 50 business went public in 2021.
Due to the company's struggles to establish sustainable research and pharmaceuticals companies and create recurring revenue, 23andMe's stock has largely been in free fall in recent years. The company's market capitalization is less than $20 million as of Monday's closure.
If the court grants 23andMe's request to sell its assets under a Chapter 11 plan, the business will "actively solicit qualified bids" within a 45-day period. In her Monday post, Wojcicki stated that she intends to bid on the business alone.
The bankruptcy filing states that 23andMe has estimated assets of between $100 million and $500 million and liabilities of between $100 million and $500 million.
In addition to its financial difficulties, 23andMe's DNA database has generated privacy issues in recent years. Hackers gained access to around 7 million consumers' data in October 2023.
On Friday, California Attorney General Rob Bonta sent out a consumer notice asking citizens to think about removing their genetic information from the 23andMe website.
According to 23andMe, it will carry on with business as usual and make no changes to the way it handles, safeguards, or keeps consumer data during the selling process.
"Regardless of the platform, I will keep fighting tirelessly for customers to have choice and transparency with regard to their personal data as I look to the future," Wojcicki stated.
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