Human genetics and biotechnology company 23andMe has filed for Chapter 11 proceedings in the U.S. Bankruptcy Court for the Eastern District of Missouri to facilitate a sales process. The company announced that it intends to continue operating throughout the sales process without any changes to how it stores, manages, or protects customer data.
Anne Wojcicki is stepping down as CEO, with Joe Selsavage, the company’s chief financial and accounting officer, appointed as interim CEO by the board. Wojcicki will remain a board member. Mark Jensen, chair and member of the board’s special committee, stated that after evaluating strategic alternatives, the company determined a court-supervised sale process would be the best way to maximize business value.
The bankruptcy proceedings follow the special committee’s rejection of final non-bidding acquisition proposals from Wojcicki and her affiliates on March 10. In a LinkedIn post, Wojcicki expressed disappointment at the decision but confirmed her intention to participate as an independent bidder. She explained that stepping down as CEO would position her more effectively for this role. Reflecting on the company's journey, she noted that when she co-founded 23andMe 19 years ago, the direct-to-consumer genetics industry was nonexistent, but today, it has grown significantly, with over 15 million 23andMe customers.
Following the bankruptcy announcement, California Attorney General Rob Bonta issued a consumer alert, reminding Californians of their rights under state privacy laws to request the deletion of their genetic data and destruction of any biological samples held by 23andMe.
23andMe went public in 2021 through a Special Purpose Acquisition Company backed by Richard Branson. Its stock peaked at $320.80 per share in 2021 but has since dropped to $0.90 per share. In 2022, biotech company GSK extended its drug discovery partnership with 23andMe, which originally began in 2018 with a $300 million investment. The collaboration lasted until July 2023.
In 2019, 23andMe received FDA 510(k) clearance for a test detecting a hereditary marker linked to prostate cancer. The risk report provides insight into whether users carry the G84E mutation in the HOXB13 gene, which has been associated with increased prostate cancer risk. That same year, Erin Trimple of 23andMe discussed with HIMSSTV how the company was driving new trends in personalized care, emphasizing the importance of using genetic information to improve health and equipping primary care providers to discuss genetics with their patients.
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