INDIANAPOLIS — Genetic testing firm 23andMe has filed for Chapter 11 bankruptcy protection in order to facilitate its sale, after years of struggling to find a sustainable business model.
In a statement announcing the bankruptcy, the firm said its CEO, Anne Wojcicki, had resigned effective immediately. 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 Special Committee of the board of directors, said in the statement.
Late last year, the company said it was cutting about 40% of its workforce - around 200 employees - and discontinuing further development of all its therapies as part of a restructuring program, according to Reuters.
In September, all seven of the company’s independent directors resigned en masse, citing their frustration with the CEO’s “strategic direction” and efforts to take 23andMe private.
The company, which went public in 2021, had never made a profit. The stock shot up following the listing, briefly valuing the company at $6 billion. Wojcicki, who owned 49% of the company, became a billionaire.
Its core product, an at-home DNA testing kit, offers “personalized genetic insights” that the company says can flag potential health risks such as one’s likelihood of developing Alzheimer's or certain cancers.
After the company filed for bankruptcy, Indiana Attorney General Todd Rokita urged Hoosiers to consider deleting their 23andMe accounts.
In a statement, Rokita says since 23andMe holds sensitive information, “this data could be considered an asset to be sold or transferred as part of any potential bankruptcy proceeding.”
He says the best way to protect information is by deleting accounts as soon as possible.
For more information on 23andMe, click here. To delete an account, click here.
