Genetic Testing Firm 23andMe Files for Bankruptcy Amid Struggles
Genetic testing company 23andMe has filed for Chapter 11 bankruptcy protection, citing financial difficulties and a need to restructure for a potential sale. The move comes after years of struggling to establish a sustainable business model.
As part of the bankruptcy filing, CEO Anne Wojcicki has stepped down, effective immediately, though she will remain on the company’s board of directors.
“After a thorough evaluation of strategic alternatives, we have determined that a court-supervised sale process is the best path forward to maximize the value of the business,” Mark Jensen, chair and member of the board’s Special Committee, stated in a company release.
The filing follows a major workforce reduction announced last year, which saw 23andMe cut around 200 jobs—about 40% of its staff—and abandon its efforts in drug development. The company had also faced leadership turmoil, with all seven independent board directors resigning in September over frustrations with Wojcicki’s strategic decisions and attempts to take the company private.
Despite going public in 2021 through a SPAC merger, 23andMe never turned a profit. The company briefly soared to a $6 billion valuation, making Wojcicki – who owned 49% of the firm – a billionaire. However, its stock has since plummeted.
Best known for its at-home DNA testing kits, 23andMe offered users insights into their genetic makeup, including potential health risks for diseases like Alzheimer’s and cancer. However, efforts to turn one-time buyers into long-term subscribers through personalized wellness plans reportedly fell short of expectations.
The bankruptcy filing marks a dramatic downturn for a company that once promised to revolutionize consumer genetics, raising questions about the long-term viability of the direct-to-consumer DNA testing industry.
