23andMe, the well-known genetic testing company, has filed for Chapter 11 bankruptcy protection as it seeks a potential sale, the firm announced on Sunday. The move comes after years of financial challenges and unsuccessful attempts to establish a sustainable business model.
As part of the restructuring, CEO Anne Wojcicki has resigned effective immediately but will remain on the company’s board of directors. Mark Jensen, chair of the board’s Special Committee, stated that a court-supervised sale is the best course of action to maximize the company’s value.
Last year, the company laid off approximately 200 employees—around 40% of its workforce—and halted further development of its therapeutic programs as part of a restructuring effort. Additionally, in September, all seven independent directors resigned simultaneously, citing concerns over the CEO’s strategic direction and her push to take the company private.
Since going public in 2021, 23andMe has struggled financially and never turned a profit. Initially, its stock soared, briefly valuing the company at $6 billion, making Wojcicki—who owned 49% of the firm—a billionaire.
The company’s core offering, an at-home DNA testing kit, provides users with genetic insights related to health risks, such as predisposition to Alzheimer’s and certain cancers. In an attempt to generate recurring revenue, 23andMe introduced a subscription model for ongoing health updates and wellness plans, but the initiative reportedly fell short of expectations.
With the bankruptcy filing, 23andMe now hopes to find a buyer who can steer the company in a new direction.
