Genetic testing firm 23andMe stated on Sunday it filed for Chapter 11 bankruptcy safety within the U.S. to assist the $50 million firm sell itself and that CEO Anne Wojcicki had resigned after a number of failed takeover bids.
23andMe, whose saliva-based check kits assist clients study their ancestry, had minimize about 40%, or 200 staff, of its workforce and stopped improvement of all its therapies as a part of a restructuring program introduced in November.
Wojcicki, to get replaced by CFO Joe Selsavage on an interim foundation, has been pushing for a buyout since April final yr however 23andMe’s board has rejected all affords.
The newest supply was for $0.41 per share earlier this month, an 84% minimize to a $2.53-per-share supply the earlier month since her companion in that bid, personal fairness firm New Mountain, had walked away after the board rejected the proposal.
The newest supply valued 23andMe at about $11 million, under its present worth of $50 million, per LSEG information, and a far cry from the $3.5 billion market capitalisation when it went public in 2021.
“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,” Chair Mark Jensen stated in an announcement.
23andMe stated it has secured a debtor-in-possession (DIP) financing dedication for about $35 million and expects to proceed working through the sale course of. It didn’t say if it had some other buyout curiosity or affords.
It listed each belongings and estimated liabilities in a spread of $100 million to $500 million within the court docket submitting.
A month earlier than its restructuring program, 23andMe agreed to pay $30 million and provides three years of safety monitoring to settle a lawsuit accusing it of failing to defend the privateness of 6.9 million clients whose private data was uncovered in an information breach in 2023.
Published – March 24, 2025 03:03 pm IST
