DNA testing firm 23andMe files for bankruptcy, CEO resigns

Thomson Reuters

· Posted: Mar 24, 2025 10:21 AM EDT | Last Updated: 6 hours ago

23andMe connected Sunday filed for bankruptcy successful the U.S. aft struggling with the fallout of a information breach and anemic request for its ancestry investigating kits that featured successful Oprah Winfrey's yearly database of favourite things conscionable 8 years ago.

The biotech unicorn has seen a crisp autumn successful its marketplace worth since then. On Monday, its shares fell 46 per cent to 96 cents aft co-founder and CEO Anne Wojcicki, who made aggregate failed takeover bids, besides resigned.

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Wojcicki volition beryllium replaced by main fiscal serviceman Joe Selsavage connected an interim basis.

Founded successful 2006, 23andMe was the archetypal institution to connection autosomal investigating by getting users to straight taxable saliva samples, which would beryllium analyzed to nutrient charts of their inheritance and lineage. 

In 2021, billionaire Richard Branson's SPAC (special-purpose acquisition company) took 23andMe nationalist astatine a $3.5 cardinal US valuation. AncestryDNA, which offers akin tests, was besides bought by Blackstone Group that aforesaid year, contempt slowing income for some the familial investigating companies.

A five-month-long information breach successful 2023, which exposed idiosyncratic information of astir seven million customers, dealt a large stroke to 23andMe's reputation. Late past year, it laid disconnected 200 employees and stopped improvement of each therapies.

It besides agreed to a $30-million US colony successful a suit related to the breach.

Wojcicki has been pushing for a buyout since past April but has been rebuffed by 23andMe's board. She reportedly utilized her contacts including ex-husband and Google co-founder Sergey Brin to assistance thrust archetypal investments. In September, each of 23andMe's autarkic directors resigned from the committee amid Wojcicki's attempts to instrumentality the institution private. Three caller autarkic directors were appointed successful October. 

She intends to marque different bid, Wojcicki said successful a station connected X connected Monday, without giving details. Her past connection of 41 cents per stock valued 23andMe astatine astir $11 cardinal US, beneath its existent worth of $50 cardinal US, and a acold outcry from its $6 cardinal US highest successful 2021.

23andMe secured a financing committedness of astir $35 cardinal US connected Sunday and volition proceed to run during the merchantability process. It did not accidental if it had different buyout offers oregon interest.

It listed assets and estimated liabilities betwixt $100 cardinal US and $500 cardinal US.