Gene testing firm 23andMe filed for Chapter 11 bankruptcy to enable its sale, as it struggled with a sustainable business model since going public in 2021. CEO Anne Wojcicki resigned, with 40% of its workforce cut last year and development of therapies halted. A mass resignation of independent directors signaled turmoil within the company. Despite initial valuation at $6 billion post-IPO, 23andMe has never turned a profit, and its efforts to convert customers into subscribers proved unsuccessful, leading to its current financial predicament.
After 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.
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.
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.
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