Anne Wojcicki, CEO of DNA testing company 23andMe, resigns.

What just happened? The DNA testing specialist 23andMe filed for Chapter 11 bankruptcy to facilitate a sale. Mark Jensen said that following a thorough analysis, it was determined that a court-supervised sales process would be the most effective way to maximize the value for the business.

23andMe, a direct-to consumer genetics testing company, was founded in 2006. It became a publicly-traded company in June 2021 and trades under the ticker symbol. “ME.” During that time, cofounder and CEO Anne Wojcicki stated that the company had more than 11 million users who were using genetics in order to diagnose, treat and prevent human diseases.

23andMe was valued at $6 billion at its peak. However, this would not last.

It took the company five months to recover from an extensive data breach that began in April 2023. Later, it was revealed that hackers gained access to data on around 5.5 millions people who were using the DNA Relatives service of the company. The exposed data included names, birth dates, ancestry records, and more. A 23andMe representative told TechCrunch that the breach exposed family tree information for another 1.4 million users.

Some consumers have also lost interest in “at-home” DNA testing, which they view as “one and done” a model that does not lend itself to repeat customers.

The move was expected save more than 35 million dollars annually, with a one-time cost of $12 million for severance packages. Perhaps it was a case where too little, too soon.

The share value of 23andMe is now just $0.92 – down from a high of over $320.

Wojcicki resigns as CEO with immediate effect, but will remain on the board. We’re told that CFO Joe Selsavage was appointed interim chief executive.

Image Credit: National Cancer Institute