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Genetics testing firm 23andMe has filed for chapter safety within the US in a bid to promote itself, with chief government Anne Wojcicki stepping down instantly because the as soon as high-flying tech group fights for survival.
California-based 23andMe mentioned late on Sunday that it had filed for Chapter 11 chapter proceedings to “facilitate a sale course of to maximise the worth of its enterprise” after exploring strategic options.
In a publish on X on Sunday, Wojcicki mentioned she was dissatisfied {that a} earlier bid she had made to take the corporate non-public was rejected. She was resigning so as to “be in the very best place to pursue the corporate as an impartial bidder”, she added.
The corporate has been facing doubts over its enterprise mannequin, disputes with buyers and rising concern over who owns its huge database. It has by no means reported a internet revenue and has plunged in worth from a peak of $5.8bn in February 2021 to a market capitalisation of lower than $50mn for its Nasdaq-listed shares.
“We anticipate the court-supervised course of will advance our efforts to deal with the operational and monetary challenges we face, together with additional value reductions and the decision of authorized and leasehold liabilities,” mentioned Mark Jensen, chair and member of the board’s particular committee that introduced the Chapter 11 course of.
Revenues have slumped amid slowing demand for 23andMe’s signature “spit kits”, and the corporate final yr introduced a restructuring that halted its efforts to develop new medicines — ending Wojcicki’s long-held ambition to show the enterprise right into a drug improvement firm.
Wojcicki has tried a number of instances to take the corporate non-public and final yr pitched venture capitalists on a deal that may redefine the corporate as a healthcare subscription enterprise and a supplier of genetic information.
Her first bid helped set off the resignation of impartial board administrators final September. They complained Wojcicki had failed to supply a “totally financed proposal” and mentioned her “concentrated voting energy” left them with few different choices. One other bid was rejected earlier this month.
Wojcicki mentioned in her X publish on Sunday that she was supportive of the corporate, including: “If I’m lucky sufficient to safe the corporate’s property by means of the restructuring course of, I stay dedicated to our long-term imaginative and prescient of being a world chief in genetics.”
Joe Selsavage, the corporate’s chief monetary and accounting officer, will change Wojcicki as interim chief government, with 23andMe aspiring to proceed working its enterprise through the sale course of. Wojcicki will stay on the corporate’s board of administrators.
23andMe mentioned it had additionally acquired a dedication for debtor-in-possession financing of as much as $35mn from funding agency JMB Capital Companions.
