Genetic testing company 23andMe has filed for bankruptcy in the United States following a series of setbacks, including declining demand for its ancestry kits and a damaging data breach that compromised the personal information of nearly 7 million customers.
The company’s shares plummeted 46% to 96 cents on Monday after co-founder and CEO Anne Wojcicki stepped down following multiple failed takeover attempts.
Wojcicki will be replaced on an interim basis by Chief Financial Officer Joe Selsavage. The biotech firm, once valued at $3.5 billion after going public through billionaire Richard Branson’s SPAC in 2021, has struggled in recent years. The genetic testing industry has seen declining sales, with rival company AncestryDNA also facing similar challenges despite its acquisition by Blackstone Group that same year.
The five-month-long data breach in 2023 severely impacted 23andMe’s reputation, leading to a $30 million legal settlement, mass layoffs of 200 employees, and the suspension of its drug development efforts.
Wojcicki, who had been pushing for a buyout since April 2023, indicated in a post on X that she intends to make another bid. However, her previous offer of 41 cents per share valued the company at just $11 million—far below its current $50 million valuation and a drastic decline from its $6 billion peak in 2021.
Despite securing a $35 million financing commitment, 23andMe has not disclosed whether it has received any other buyout offers or interest. The company plans to continue operations during the bankruptcy proceedings while exploring potential sale options.