23andMe initially gained prominence by collecting saliva samples from millions of customers to reveal their ancestries. The company aspired to do more by developing new medicines and offering personalized health care, leveraging its extensive genetic data. In the fall of 2021, the San Francisco-based company had a $6 billion stock market value, with co-founder and CEO Anne Wojcicki outlining a promising future in biotechnology and telehealth. However, the company’s best days were already in the past as it began a long decline culminating in a Chapter 11 bankruptcy filing.
The company invested heavily in various business ventures that failed to revive its sagging prospects. Wojcicki resigned as CEO but remains on the board, expressing unwavering belief in the company’s future and planning to bid for it in bankruptcy. The company stated that the bankruptcy filing aims to maximize business value, and customer data storage and management practices will remain unchanged.
23andMe amassed over 15 million customers for its genetic testing, but the testing model had a natural limit: customers only needed to order a test once. The company ventured into medicine, aiming to provide actionable insights on genetic information about diseases. In 2017, it became the first company to win FDA clearance to market such tests directly to consumers. The following year, 23andMe partnered with GlaxoSmithKline to mine its genetic database for new therapies. However, after the GSK deal ended, 23andMe struggled to find another pharmaceutical partner, impacting its revenue.
The company acquired a telehealth firm for $400 million to combine genetic insights with delivering primary care. Despite pursuing other ventures, including premium subscriptions and longevity tests, none of these ventures put the company on a sustainable financial footing. Wall Street criticized 23andMe’s hybrid business model, and financial problems were compounded by a massive hack in October 2023. In November, Wojcicki expressed optimism that the pharmaceutical industry would see the value in using the company’s genetic data for new discoveries.
— news from The Washington Post