DNA testing firm 23andMe files for bankruptcy to sell itself; CEO leaves after failed bids
SUMMARY
23andMe, a prominent genetic testing company, filed for Chapter 11 bankruptcy protection in the United States to facilitate a court-supervised sale, following a significant decline in its market value. The filing, announced Sunday, coincided with the immediate resignation of co-founder and CEO Anne Wojcicki, who had unsuccessfully attempted multiple buyout bids since April 2024. Wojcicki, replaced on an interim basis by Chief Financial Officer Joe Selsavage, plans to submit another independent bid, as stated in a Monday X post. Once valued at $3.5 billion after going public via a Richard Branson-backed SPAC in 2021, 23andMe’s shares dropped 46% to 96 cents on March 24, reflecting a market value of $50 million. The company has faced challenges, including a 2023 data breach affecting nearly 7 million customers, leading to a $30 million lawsuit settlement, alongside weakened demand for its ancestry kits and the cessation of therapy development after 200 layoffs.
