The 23AndMe genetic take a look at firm has filed for chapter on Sunday after months of uncertainty about its enterprise mannequin and growing issues concerning the safety of the troops of the shopper knowledge it possesses.
In a statement23andme said that he had utilized for chapter on Chapter 11 to “make it simpler for the sale course of to maximise the worth of his enterprise” and to additional cut back prices. Anne Voychitsky, CEO of 23andme, has introduced that she has resigned to bid on the corporate.
23andme intends to proceed working in the course of the sale course of, with out adjustments in the way in which it shops, manages or protects buyer knowledge, the assertion mentioned.
Mrs. Wojcicki, co-founder of the corporate who owned 49 p.c of her voting shares, said On Sunday, she was disenchanted that the corporate had rejected its earlier supply to just accept it privately.
“I resigned because the CEO of the corporate, so I will be in the perfect place to pursue the corporate as an unbiased public sale participant,” she mentioned in a press release about social media, thanked what she mentioned they have been 15 million prospects of the corporate. These purchasers present the corporate with a pattern of saliva for evaluation, often to study particulars of their descent, household options and potential well being dangers.
After 23andme grew to become public in 2021, its market worth briefly exceeded $ 6 billion. However she was buying and selling at lower than $ 50 million final week earlier than going bankrupt. In the course of the first 9 months of its present fiscal 12 months, the corporate reported a 7 -percent decline in income and losses of $ 174 million.
A part of the decline in revenue is because of the smaller take a look at kits ordered. This occurred after an information breach in 2023, wherein hackers seem like directed to Jewish and Chinese language prospects and gained entry to non-public data from almost seven million accounts.
Subsequently, a category motion case accused the corporate of not informing these purchasers that that they had been directed. The corporate said in a statement On the time he takes steps to guard buyer knowledge.
In September, seven unbiased administrators aboard the corporate resigned, citing frustration from its route.
