Anne Wojcicki, founder and president of 23andme Inc., all through the South by Southwest (SXSW) celebration in Austin, Texas, United States, on Friday, March 10, 2023.
Jordan Vonderhaar|Bloomberg|Getty Images
Embattled hereditary screening enterprise 23andMe, when valued at $6 billion, utilized for Chapter 11 private chapter protection in Missouri authorities court docket on Sunday night.
The enterprise’s chief government officer, Anne Wojcicki, has truly surrendered from her operate as president dependable instantly, although she will definitely proceed to be a participant of the board. Joseph Selsavage, 23andMe’s major financial and accounting policeman, will definitely act as performing chief government officer, in response 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 remark higher on the declaring.
The earlier billionaire co-founded 23andMe in 2006, and the enterprise soared proper into the mainstream because of its at-home DNA screening units that offered shoppers understanding proper into their relations backgrounds and hereditary accounts. The five-time Disruptor 50 enterprise went public in 2021 utilizing a merging with an distinctive operate procurement enterprise, which valued the enterprise at round $3.5 billion on the time
23andMe’s provide has truly primarily remained in complimentary autumn in current instances because the enterprise battled to supply repeating earnings and stand sensible examine and therapies organizations. As of Monday early morning, the enterprise has a market capitalization of round $25 million.
Last March, 23andMe’s unbiased supervisors created an distinctive board to evaluate the enterprise’s potential programs onward. Wojcicki despatched a number of propositions to take the enterprise private, nonetheless all have been denied. The distinctive board “unanimously determined to reject” Wojcicki’s latest proposition beforehand this month.
If 23andMe’s technique to market its possessions with a Chapter 11 technique is accepted by the court docket, the enterprise will definitely “actively solicit qualified bids” over a 45-day process. Wojcicki prepares to go after the enterprise as an unbiased potential purchaser, she said in her article on Monday.
23andMe has in between $100 million and $500 million in approximated possessions, along with in between $100 million and $500 million in approximated obligations, in response to the bankruptcy filing.
Beyond its financial issues, privacy concerns round 23andMe’s hereditary knowledge supply have truly swirled in current instances. In October 2023, hackers accessed the information of just about 7 million shoppers.
California Attorney General Rob Bonta on Friday launched a consumer alert advising residents to consider eradicating their hereditary data from 23andMe’s site.
23andMe said there will definitely be no modifications to the way through which it outlets, safeguards or handles shopper data with the sale process, and it’ll definitely proceed working service typically.
“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 said.
Watch: The fluctuate of 23andMe
