23andMe files for bankruptcy and will try to find a buyer
The once-prominent genetic testing company, 23andMe, has made headlines with its recent announcement of declaring bankruptcy and seeking a buyer. The company’s CEO, Anne Wojcicki, has resigned, and Chief Financial and Accounting Officer Joe Selsavage has taken over as the interim chief executive.
This drastic move comes after 23andMe underwent a restructuring plan, which involved cutting 40% of its workforce and the resignation of its entire board. The company’s Chair, Mark Jensen, stated that the court-supervised process will help address operational and financial challenges, including cost reductions and resolving legal and leasehold liabilities.
23andMe offers two primary services – consumer and therapeutics. The consumer service provides individuals with information on their ancestry and genetic health profile, including the risk of passing on certain conditions to their children. The therapeutics unit focuses on developing treatments and conducting research on various conditions like cancer and immune diseases.
One of the major concerns surrounding 23andMe’s bankruptcy is data privacy. The company uses customers’ genetic data for ancestry tracing and other purposes. Despite the bankruptcy filing, 23andMe assures that there will be no changes to how they manage and protect customer data. Users must explicitly consent to data sharing, and any potential buyer would need to comply with privacy laws.
The company’s stock, which was once valued at over $300 a share, has plummeted to $1.79. 23andMe filed for Chapter 11 protection in the U.S. Bankruptcy Court for the Eastern District of Missouri. If approved, the company will solicit bids from potential acquirers and may conduct an auction.
As 23andMe navigates through this challenging period, the future of the company remains uncertain. The impact of its bankruptcy on customers, employees, and the field of genetic testing is yet to be fully realized. Only time will tell what lies ahead for this once-promising genetic testing giant.
