In a dramatic turn of events, genetic testing company 23andMe announced Sunday its filing for Chapter 11 bankruptcy protection and the resignation of CEO Anne Wojcicki following unsuccessful takeover attempts.
The company, known for its direct-to-consumer DNA testing kits that reveal ancestry information, plans to sell itself as part of the bankruptcy proceedings. Chief Financial Officer Joe Selsavage will serve as interim CEO following Wojcicki's departure.
The announcement comes after months of financial struggles and failed buyout attempts. The most recent offer valued the company at just $11 million, with a per-share price of $0.41 - a stark contrast to its $3.5 billion market value when it went public in 2021.
The company's decline accelerated in late 2023 when it laid off 40% of its workforce (approximately 200 employees) and halted all therapy development programs. Adding to its challenges, 23andMe recently agreed to a $30 million settlement over a data breach that exposed personal information of 6.9 million customers.
Board Chair Mark Jensen stated that after exploring various options, "a court-supervised sale process is the best path forward to maximize the value of the business."
To maintain operations during the sale process, 23andMe has secured $35 million in debtor-in-possession financing. Court filings indicate both the company's assets and estimated liabilities range between $100 million and $500 million.
The company's current market value stands at $50 million, according to LSEG data. The bankruptcy filing marks a dramatic decline for the once-pioneering DNA testing firm that helped popularize personal genetic testing for ancestry discovery.