23andMe, the gene testing firm, has filed for Chapter 11 bankruptcy protection as it seeks a court-supervised sale to resolve ongoing financial struggles. CEO Anne Wojcicki has resigned, amidst significant restructuring that included workforce cuts and halted therapy developments. With a history of never making a profit, the company, which peaked at a $6 billion valuation after going public in 2021, faces challenges in transitioning its model from one-time buyers of DNA kits to sustainable subscribers. Mark Jensen emphasized the importance of maximizing value through this sale process.
Gene testing firm 23andMe has filed for Chapter 11 bankruptcy protection, prompting strategic changes including the resignation of CEO Anne Wojcicki.
The company's inability to find a sustainable business model and the sale process are crucial after cutting 40% of its workforce.
Mark Jensen stated that a court-supervised sale process is necessary to maximize the business's value after evaluating strategic alternatives.
Despite a peak valuation of $6 billion post-IPO, 23andMe has never turned a profit, facing challenges in converting one-time buyers into subscribers.
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