23andMe considers sale amid financial struggles and leadership turmoil
What's the story
23andMe, a US-based biotechnology company pioneer in consumer genetic testing, is considering "strategic alternatives" amid financial struggles.
These options could include a potential sale or restructuring of the company.
The news comes after the company released its third-quarter results, which showed an 8% decline in consumer services revenue to $39.6 million from $42.9 million in the same period last year.
Stock plunge
Company's stock takes a hit, leadership faces internal dissent
After the announcement of possible strategic shifts, 23andMe's stock plummeted. The company's shares, which had already dropped 82% last year, fell another 10%.
The financial instability has also been marred by internal discord within the company's leadership.
On September 17 last year, seven board members resigned as they were unhappy with the direction CEO Anne Wojcicki was taking the company.
Evolution
23andMe's journey: From genetic testing to drug discovery
Founded in 2006, 23andMe aimed to make genetic testing more accessible with a direct-to-consumer model.
The company became popular by offering affordable DNA test kits and has since branched out into other areas, including drug discovery and weight loss.
However, despite these expansions, sales of its flagship test kits started declining soon after going public in 2021, leading to its current financial situation.
Challenges
Privacy concerns and financial losses plague 23andMe
Along with falling sales, 23andMe has also been marred by other issues.
In October 2023, the company's systems were hacked by cybercriminals who stole personal information of nearly seven million customers. The incident resulted in a $30 million settlement.
By the 2023 fiscal year, 23andMe had reported a net loss of $312 million and its individual share price has plummeted a staggering 98% since going public.