23andMe files for bankruptcy; CEO resigns
Gene testing firm 23andMe said on Sunday it had filed for Chapter 11 bankruptcy protection in order to facilitate its sale, after years of struggling to find a sustainable business model.
In announcing the bankruptcy, the firm said its CEO, Anne Wojcicki, had resigned effective immediately. She will remain on the company鈥檚 board of directors.
鈥淎fter a thorough evaluation of strategic alternatives, we have determined that a court-supervised sale process is the best path forward to maximize the value of the business,鈥� Mark Jensen, chair and member of the Special Committee of the board of directors, said in the statement.
Late last year, the company said it was cutting about 40% of its workforce - around 200 employees - and discontinuing further development of all its therapies as part of a restructuring program, Reuters.
In September, all seven of the company鈥檚 independent directors , citing their frustration with the CEO鈥檚 鈥渟trategic direction鈥� and efforts to take 23andMe private.
The company, which went public in 2021, had never made a profit. The stock shot up following the listing, briefly valuing the company at $6 billion. Wojcicki, who owned 49% of the company, became a billionaire.
Its core product, an at-home DNA testing kit, offers 鈥減ersonalized genetic insights鈥� that the company says can flag potential health risks such as one鈥檚 likelihood of developing Alzheimers or certain cancers.
23andMe tried to convert one-time buyers into subscribers with the promise of continued feedback and personalized wellness plans but had reportedly fallen short of its goals.