Anne Wojcicki, founder and president of 23andme Inc., throughout the South by Southwest (SXSW) celebration in Austin, Texas, United States, on Friday, March 10, 2023.
Jordan Vonderhaar|Bloomberg|Getty Images
Embattled hereditary screening business 23andMe, when valued at $6 billion, applied for Chapter 11 personal bankruptcy defense in Missouri government court on Sunday evening.
The business’s chief executive officer, Anne Wojcicki, has actually surrendered from her function as president reliable right away, though she will certainly continue to be a participant of the board. Joseph Selsavage, 23andMe’s primary economic and accounting policeman, will certainly act as acting chief executive officer, according to a filing with the UNITED STATE Securities and Exchange Commission.
“We have had many successes but I equally take accountability for the challenges we have today,” Wojcicki created in a post on X very early Monday early morning. “There is no doubt that the challenges faced by 23andMe through an evolving business model have been real, but my belief in the company and its future is unwavering.”
23andMe decreased to comment better on the declaring.
The previous billionaire co-founded 23andMe in 2006, and the business soared right into the mainstream as a result of its at-home DNA screening sets that provided consumers understanding right into their family members backgrounds and hereditary accounts. The five-time Disruptor 50 business went public in 2021 using a merging with an unique function procurement business, which valued the business at around $3.5 billion at the time
23andMe’s supply has actually primarily remained in complimentary autumn in recent times as the business battled to produce repeating profits and stand practical study and therapies organizations. As of Monday early morning, the business has a market capitalization of around $25 million.
Last March, 23andMe’s independent supervisors created an unique board to assess the business’s possible courses onward. Wojcicki sent several propositions to take the business personal, however all were denied. The unique board “unanimously determined to reject” Wojcicki’s newest proposition previously this month.
If 23andMe’s strategy to market its possessions with a Chapter 11 strategy is accepted by the court, the business will certainly “actively solicit qualified bids” over a 45-day procedure. Wojcicki prepares to go after the business as an independent prospective buyer, she stated in her article on Monday.
23andMe has in between $100 million and $500 million in approximated possessions, in addition to in between $100 million and $500 million in approximated obligations, according to the bankruptcy filing.
Beyond its economic problems, privacy concerns around 23andMe’s hereditary data source have actually swirled in recent times. In October 2023, hackers accessed the information of virtually 7 million consumers.
California Attorney General Rob Bonta on Friday released a consumer alert advising citizens to think about removing their hereditary information from 23andMe’s web site.
23andMe stated there will certainly be no modifications to the manner in which it shops, safeguards or handles client information with the sale procedure, and it will certainly proceed running service customarily.
“As I think about the future, I will continue to tirelessly advocate for customers to have choice and transparency with respect to their personal data, regardless of platform,” Wojcicki stated.
Watch: The fluctuate of 23andMe
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