Biotechnology firm 23andMe has filed for chapter, with co-founder and CEO Anne Wojcicki stepping down, efficient instantly.
On Sunday, 23andMe filed a voluntary petition for chapter within the U.S. Chapter Courtroom for the Japanese District of Missouri. Based on a press launch, it “intends to proceed working its enterprise within the abnormal course all through the sale course of,” with “no modifications to the way in which the corporate shops, manages, or protects buyer knowledge.”
The DNA testing firm stated it could use the cash from the sale to “resolve all excellent authorized liabilities stemming from the beforehand disclosed October 2023 cyber incident.” The corporate agreed to pay a $30 million settlement over an enormous knowledge breach that affected 6.9 million customers in October 2023.
As soon as valued at $6 billion, 23andMe misplaced 98 p.c of its worth in October 2024, with all unbiased board members resigning in September.
23andMe additionally introduced that CEO Wojcicki had resigned, with the corporate saying the choice was “by mutual settlement between Ms. Wojcicki and the Particular Committee” of the Board of Administrators. Wojcicki posted on X that she was “disillusioned” by the result — the CEO’s bid to take 23andMe non-public was rejected in early March 2025.
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“Whereas I’m disillusioned that we now have come to this conclusion and my bid was rejected, I’m supportive of the corporate and I intend to be a bidder.” she wrote. “I’ve resigned as CEO of the corporate so I may be in one of the best place to pursue the corporate as an unbiased bidder.”
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Wojcicki has been changed within the interim by chief monetary and accounting officer Joe Selsavage.
So, what’s subsequent? 23andMe have filed for the U.S. Chapter Courtroom to permit the corporate to unload all its belongings over a 45-day course of during which it could solicit bidders, after which 23andMe would conduct an public sale. “Any purchaser might be required to adjust to relevant legislation with respect to the remedy of buyer knowledge and any transaction might be topic to customary regulatory approvals,” the corporate stated in its announcement.
23andMe introduced plans in November 2024 to put off about 40 p.c of its workers as a part of a restructuring program, in addition to discontinuing additional improvement of its testing know-how. For the remaining workers, 23andMe stated it has “filed customary motions with the Courtroom looking for quite a lot of ‘first-day’ reduction, together with the authority to pay worker wages and advantages and compensate sure distributors and suppliers on a go-forward foundation.”
“After an intensive analysis of strategic options, we now have decided {that a} court-supervised sale course of is one of the best path ahead to maximise the worth of the enterprise,” stated Mark Jensen, chair and Particular Committee member, in a press assertion. Jensen additionally stated 23andMe was “dedicated to persevering with to safeguard buyer knowledge…and knowledge privateness might be an necessary consideration in any potential transaction.”
