Gene testing agency 23andMe stated on Sunday it had filed for Chapter 11 chapter safety with a view to facilitate its sale, after years of struggling to discover a sustainable enterprise mannequin.
In a press release saying the chapter, the agency stated its CEO, Anne Wojcicki, had resigned efficient instantly. She is going to stay on the corporate’s board of administrators.
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“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,” Mark Jensen, chair and member of the Particular Committee of the board of administrators, stated within the assertion.
Late final 12 months, the corporate stated it was chopping about 40% of its workforce – round 200 workers – and discontinuing additional growth of all its therapies as a part of a restructuring program, based on Reuters.
In September, all seven of the corporate’s impartial administrators resigned en masse, citing their frustration with the CEO’s “strategic direction” and efforts to take 23andMe non-public.
The corporate, which went public in 2021, had by no means made a revenue. The inventory shot up following the itemizing, briefly valuing the corporate at $6 billion. Wojcicki, who owned 49% of the corporate, grew to become a billionaire.
Its core product, an at-home DNA testing equipment, affords “personalized genetic insights” that the corporate says can flag potential well being dangers corresponding to one’s chance of creating Alzheimers or sure cancers.
23andMe tried to transform one-time patrons into subscribers with the promise of continued suggestions and customized wellness plans however had reportedly fallen in need of its objectives.
This story has been up to date with extra reporting and context.
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