Anne Wojcicki, co-founder and CEO of 23andMe Inc. during the South by Southwest (SXSW) Festival held in Austin, Texas, USA on Friday, March 10th, 2023.
Jordan Vondeher | Bloomberg | Getty Images
Fighted genetic testing company 23andmeonce valued at $6 billion, filed for Chapter 11 bankruptcy protection in Missouri federal court on Sunday night.
The company’s CEO, Anne Wojcicki, remains a member of the board, but soon resigned from his role as CEO. Joseph Selsavage, 23andme’s Chief Financial and Accounting Officer, will serve as interim CEO, according to a filing with the Securities and Exchange Commission.
“We’ve had a lot of success, but I’m just as accountable for today’s challenges,” Wojcicki wrote in an early Monday morning X post. “While there is no doubt that the challenges 23andme faces through its evolving business model are real, my belief in the company and its future is unshakable.”
23Andme declined to comment further on the filing.
The former billionaire co-founded 23andMe in 2006, and the company became mainstream as customers gave insight into family history and genetic profiles for their home DNA test kits. The five CNBC Disruptor 50 Company was published in 2021 through a merger with a special purpose acquisition company.
23Andme’s stock has been falling mostly free in recent years. The company had a hard time generating recurring revenue and creating viable research and treatments. As of Monday morning, the company’s market capitalization is approximately $25 million.
Last March, 23AndMe’s independent directors established a special committee to assess the company’s potential pathways. Wojcicki submitted several proposals to keep the company private, all of which were rejected. The special committee “decided to unanimously reject Wojcicki’s latest proposal earlier this month.
If the 23Andme to sell assets through Chapter 11 plan is approved by the court, the company is “actively seeking qualified bids” through the 45-day process. Wojcicki plans to pursue the company as an independent bidder, she said in a post Monday.
According to the bankruptcy filing, 23AndMe has estimated assets of between $100 million and $500 million, and estimated liabilities of between $100 million and $500 million.
Beyond that financial issue, privacy concerns have swirled in recent years the 23andme genetic database. In October 2023, hackers accessed information from nearly 7 million customers.
California Attorney General Rob Bonta issued a consumer warning Friday urging residents to consider removing genetic data from the 23andMe website.
23Andme says there will be no changes to the way customer data is stored, protected or managed through the sales process and will continue its sales business as normal.
“Like we’re thinking about the future, we continue to tirelessly advocate for our customers to have choice and transparency regarding personal data, regardless of platform,” Wojcicki says.
Watch: 23andMe ascending and descending
