Genetics testing firm 23andMe has filed for Chapter 11 chapter safety within the U.S. to provoke the sale of its property. Alongside the announcement, the corporate’s co-founder and CEO Anne Wojcicki individually stated she is leaving the corporate to grow to be an impartial bidder for the corporate.
“After an intensive analysis of strategic options, we have now decided {that a} court-supervised sale course of is the very best path ahead to maximise the worth of the enterprise,” Mark Jensen, chair and member of the Special Committee of the Board of Directors, stated in a press release.
“We anticipate the court-supervised course of will advance our efforts to handle the operational and monetary challenges we face, together with additional price reductions and the decision of authorized and leasehold liabilities. We imagine within the worth of our folks and our property and hope that this course of permits our mission of serving to folks entry, perceive, and profit from the human genome to reside on for the good thing about prospects and sufferers.”
“The 23andMe Special Committee launched information at this time indicating their plan to take the corporate by way of the Chapter 11 course of. While I’m upset that we have now come to this conclusion and my bid was rejected, I’m supportive of the corporate, and I intend to be a bidder. I’ve resigned as CEO of the corporate so I may be in the very best place to pursue the corporate as an impartial bidder,” Wojcicki stated in a submit on X.
23andMe has had a difficult few years after it went public in 2021. Best recognized for its saliva-based check kits that provide prospects a glimpse into their genetic ancestry, the corporate has seen its market capitalization plummet greater than 99% from a peak of $6 billion after it failed to show a revenue.
Then in 2023, 23andMe suffered a large cyberattack by which the info of its almost 7 million prospects, together with customers’ genetic predisposition and ancestry stories, was stolen by hackers. In September 2024, the corporate settled a lawsuit associated to the info breach by paying $30 million, and shortly afterwards, Wojcicki stated she was exploring taking the corporate non-public.
At the time of writing, the corporate’s market worth was round $48 million, with its inventory buying and selling at $1.79.
