Genetic testing giant 23andMe has filed for bankruptcy protection in the US as it seeks to sell off its business — placing the personal genetic data of millions of customers in a precarious position.
The San Francisco-based company, which rose to prominence with its consumer DNA testing kits, announced on Sunday that it had initiated voluntary Chapter 11 proceedings in Missouri to “facilitate a sale process to maximise the value of its business.”
The dramatic development follows a catastrophic data breach in 2023 that compromised the personal information of nearly 7 million customers — almost half of its global user base. With customer trust plummeting and revenues collapsing, the company has cut 40 per cent of its workforce, halted all therapeutic development, and now faces an uncertain future.
To add to the turmoil, co-founder and chief executive Anne Wojcicki has stepped down in order to mount a private bid for the company — one of several she has unsuccessfully proposed in recent months. She remains on the board but has passed day-to-day leadership to CFO Joe Selsavage.
Wojcicki’s latest offer, valuing the firm at just $11 million, represents a dramatic fall from grace for a company once valued at $5.8 billion at the peak of its Nasdaq debut in 2021. Her bid of $0.41 per share — an 84 per cent drop from an earlier proposal — was rejected by the board, prompting her private equity partner to withdraw from the process.
The company has secured $35 million in debtor-in-possession financing from JMB Capital Partners to maintain operations during the sale, and insists it is “business as usual” for now. “There are no changes to the way the company stores, manages, or protects customer data,” 23andMe said.
But concerns about genetic privacy are escalating. California’s attorney general, Rob Bonta, issued a public warning over the weekend urging 23andMe customers to request deletion of their DNA data and destruction of biological samples. The company is already paying $30 million and offering three years of identity protection following a class-action lawsuit over the breach.
Chairman Mark Jensen said a court-supervised sale was now the only viable route. “Data privacy will be an important consideration in any potential transaction,” he noted.
Wojcicki, who co-founded 23andMe in 2006, had long harboured ambitions to evolve the company into a drug developer by leveraging its vast genetic database. That strategy is now on ice, with all therapeutic projects shelved since November.
Writing on X (formerly Twitter), she expressed her disappointment: “If I am fortunate enough to secure the company’s assets through the restructuring process, I remain committed to our long-term vision of being a global leader in genetics.”
But critics say the collapse of 23andMe is a stark warning about the risks of commercialising sensitive health data without adequate safeguards. As one of the first direct-to-consumer genomics companies, its downfall raises questions not only about business models in biotech but also about consumer trust in the handling of deeply personal data.
With 15 million DNA profiles in its archives and ownership potentially changing hands, privacy campaigners and customers alike are watching closely — and calling for stronger protections around how genetic data can be sold, stored or shared in future.
Read more:
Millions of DNA records at stake as 23andMe files for bankruptcy and CEO quits to bid for business
