DNA testing company once valued at $6 billion files for bankruptcy in the US

Genetic testing giant 23andMe, once valued at $6 billion, filed for bankruptcy protection in the US today (March 24) while searching for a buyer.

The move comes as the company grapples with the aftermath of a data breach and faces significant financial losses. The DNA testing company also announced the immediate resignation of co-founder and CEO Anne Wojcicki.

Genetic testing giant 23andMe, once valued at $6 billion, has filed for bankruptcy protection in the US.

“We have achieved much, but I also take responsibility for the challenges we face today. There is no doubt that the challenges 23andMe faces as its business model changes are real, but my belief in the company and its future is unwavering,” Wojcicki wrote in an X post early Monday morning.

Based in California, 23andMe uses at-home saliva kits to analyze customers' DNA and provide personalized reports on their ancestry. Since its founding in 2006, the company has sold more than 12 million DNA tests. It operates in several major markets, including the US, Canada, the UK and Europe.

23andMe said it has started a voluntary Chapter 11 process in the US, which means the company plans to restructure its debts and assets to start anew, while continuing to operate the business. The process will also put the company on the market for sale.

According to 23andMe's announcement, Ms. Wojcicki's resignation is said to be "effective immediately" and based on mutual consent. In the post, Ms. Wojcicki expressed "disappointment" over the bankruptcy plans, but said she was stepping down as CEO so that "she can be in the best position to pursue the company as an independent contractor."

Co-founder and CEO Anne Wojcicki is leaving her management role effective immediately.

“After a thorough review of strategic options, we determined that a court-supervised sale process is the best path to maximize the value of the business. This process will help the company address its operational and financial challenges, including further cost reductions and addressing legal obligations,” said Chairman Mark Jensen.

“In addition, we are committed to continuing to protect customer data and be transparent in how we manage user data going forward, and data privacy will be an important consideration in any potential transaction,” Mr. Jensen added.

23andMe has been investigated by UK and Canadian data protection authorities in connection with a 2023 data breach, amid concerns that genetic information may have been compromised. The company has also settled a lawsuit in the US over allegations it failed to protect customer privacy.

In its latest financial results, for the period from April to December 2024, the company reported a pre-tax loss exceeding $128 million. It said declining test sales and a drop in average selling prices were partly to blame for the revenue decline.

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