Genetics testing company 23andMe has filed for Chapter 11 bankruptcy protection in the U.S. to initiate the sale of its assets. Alongside the announcement, the company’s co-founder and CEO Anne Wojcicki separately said she is leaving the company to become an independent bidder for the company.
“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 Special Committee of the Board of Directors, said in a statement.
“We expect the court-supervised process will advance our efforts to address the operational and financial challenges we face, including further cost reductions and the resolution of legal and leasehold liabilities. We believe in the value of our people and our assets and hope that this process allows our mission of helping people access, understand, and benefit from the human genome to live on for the benefit of customers and patients.”
“The 23andMe Special Committee released news today indicating their plan to take the company through the Chapter 11 process. While I am disappointed that we have come to this conclusion and my bid was rejected, I am supportive of the company, and I intend to be a bidder. I have resigned as CEO of the company so I can be in the best position to pursue the company as an independent bidder,” Wojcicki said in a post on X.
23andMe has had a troublesome few years after it went public in 2021. Best known for its saliva-based test kits that offer customers a glimpse into their genetic ancestry, the company has seen its market capitalization plummet more than 99% from a peak of $6 billion after it failed to turn a profit.
Then in 2023, 23andMe suffered a massive cyberattack in which the data of its nearly 7 million customers, including users’ genetic predisposition and ancestry reports, was stolen by hackers. In September 2024, the company settled a lawsuit related to the data breach by paying $30 million, and soon afterwards, Wojcicki said she was exploring taking the company private.
At the time of writing, the company’s market value was around $48 million, with its stock trading at $1.79.