Bankruptcy Filed by 23andMe DNA Testing Company
Facing financial struggles, 23andMe, a well-known consumer genetic testing company, has filed for Chapter 11 bankruptcy and is actively seeking a buyer. The company’s valuation, which once exceeded $3 billion, has plummeted, with its stock dropping sharply to $1.79 per share—a drastic decline from its peak of over $300 per share.
Mark Jensen Comments
“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, 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.”
“We want to thank our employees for their dedication to 23andMe’s mission. We are committed to supporting them as we move through the process. In addition, we are committed to continuing to safeguard customer data and being transparent about the management of user data going forward, and data privacy will be an important consideration in any potential transaction”
Chronological overview of key events in the history of 23andMe
- 2006: Founded by Anne Wojcicki, Linda Avey, and Paul Cusenza with the goal of providing direct-to-consumer genetic testing services.
- 2007 : Received a $3.9 million investment from Google, among other investors
- Launched its first genetic testing service
- 2008: “Invention of the Year” by Time magazine
- 2013: Faced regulatory challenges by FDA
- 2015: Received FDA authorization, the company resumed providing health-related genetic reports.
- 2020: Announced layoffs of approximately 100 employees due to declining sales
- 2021: Through a merger with Richard Branson’s VG Acquisition Corp, the company went public, reaching a valuation of $3.5 billion.
- 2023: The company suffered a major data breach impacting nearly 7 million users, resulting in reputational damage and legal issues.
- 2024: CEO Anne Wojcicki made an attempt to take the company private, but the effort was unsuccessful.
