Anne Wojikki, co-founder and co-founder and co-founder and chief executive officer of 23And Inc. during South by South West (SXSW) Festival in Austin, Texas, US on Friday, March 10, 2023.
Jordan Wonderhar | Bloomberg | Getty images
Genetic testing company symbol 23andmeOnce the value of $ 6 billion, on Sunday night, Chapter 11 was filed in the Missouri Federal Court for insolvency protection.
The company’s CEO Anne Wojikki has immediately resigned from her role as the Chief Executive, although she will remain a member of the board. According to a filing with the US Securities and Exchange Commission, the Chief Financial and Accounts Officer of 23andme, Joseph Saleswage, will serve as an interim CEO, the Chief Financial and Accounts Officer of 23andme.
“We have many successes, but I take equally accountability for the challenges we have today,” Vibrations wrote in a post on X on Monday morning. “There is no doubt that the challenges faced by 23andme through a developed business model have been real, but my faith in the company and its future is unbreakable.”
23andme refused to comment further on the filing.
The former billionaire co-established 23andme in 2006, and the company rubbed into the mainstream due to the DNA test kits of its home, which informed the customers about their family history and genetic profile. The five -time CNBC Dispractor 50 company became public through a special objective acquisition company at 2021, which at that time gave the company a price of about $ 3.5 billion.,
The stock of 23andme has mostly been in free fall in recent years as the company has struggled to generate recurring revenue and create viable research and medical businesses. As premarket trading on Monday, the company costs less than $ 50 million.
Last March, 23andme independent directors formed a special committee to evaluate the company’s possible routes. Wojcicki submitted several proposals to the company to take private, but all were rejected. The Special Committee “unanimously prescribed the most recent proposal of Vosalic earlier this month to reject.
If the plan to sell its assets through a chapter 11 scheme of 23andme is approved by the court, the company will “actively activate qualified dialects” in the 45-day process “. Wojcicki planned to pursue the company as an independent bidder, in his post on Monday.
Beyond its financial crises, the concern of privacy around 23andme’s genetic databases has rotated in recent years. In October 2023, hackers gave information about about 7 million customers.
California Attorney General Rob Bonta issued a consumer alert on Friday, urging the residents to consider removing their genetic data from the 23andme website.
23andme stated that there will be no change in the way of storing, safety or managing customer data through the sales process, and it will continue the operational business as usual.
“As I think of the future, I will continue to tirelessly advocate for customers for my personal data and transparency, regardless of the platform,” Wojcicki said.
Watch: The rise and fall of 23andme
