Once groundbreaking, then a novelty, and finally somewhat problematic according to some, genetic testing powerhouse 23andMe has filed for Chapter 11 bankruptcy protection, TechCrunch reports. The thoroughly expected move comes after co-founder and CEO Anne Wojciki failed to convince a special committee of independent directors to move the company to her private ownership, along with investment group New Mountain Capital.
When share price starts to reflect real value
But don’t Wojciki out yet, she insists
2024 saw 23andMe’s stock price tumble by over 80% amid decreased sales and the end of a five-year exclusive contract with pharmaceutical giant GlaxoSmithKline. The now-former CEO, for her part, remained staunch in the belief that the ship could be righted, pairing with New Mountain Capital for a buyout offer of $2.53 per share, or $74.7 total, just above the company’s value on the stock market.
Instead, the independent board tasked with overseeing the firm’s reorganization declined the proposal, paving the way for today’s Chapter 11 filings. The proceedings will soon put the company up for public bids, a process Wojciki promises to participate in. As Wojciki shared on Twitter/X, “While I am disappointed that we have come to this conclusion and my bid was rejected, I am supportive of the company, and I intend to be a bidder. I have resigned as CEO of the company so I can be in the best position to pursue the company as an independent bidder.”
23andMe broke ground in making informative genetic testing available to the masses, but drew increasing scrutiny from consumers focused on privacy and personal data ownership. As pressure on the company heated up over the last year, an increasing number of users moved to begin the genetic data deletion process.
Federal law could prevent your 23andMe data deletion, but you should still try
It could take years, but eventually it’ll work
The nature of Chapter 11 filing means the company won’t necessarily be going anywhere, as reorganization bankruptcy is designed to keep a company functioning while offloading financial liability to a new party. The once-upstart service’s future couldn’t be more up in the air, though, as there would likely be stark differences in direction were Wojciki and a venture capital group retake ownership, compared to the company being absorbed by a larger entity with a broader focus.
