The transfer is nearly surely the general nail within the coffin for the embattled corporate recognized for its mail-order DNA-testing equipment. Since going public by means of merger with a distinct objective acquisition corporate (SPAC) in 2021, 23andMe hasn’t ever grew to become a benefit. Its value on IPO day used to be $10; to this point in 2024, it has but to achieve a $1 valuation. Following the resignation of all its impartial administrators Tuesday, the inventory fell to its all-time low: $0.30. (As of noon Wednesday, it’s again to $0.36.)
The board contains Sequoia Capital’s Roelof Botha in addition to Neal Mohan, who took the helm as CEO of YouTube ultimate 12 months after Susan Wojcicki, Anne’s overdue sister, stepped down.
“After months of labor, we now have but to obtain from you a completely financed, absolutely diligenced, actionable proposal this is in the most efficient pursuits of the non-affiliated shareholders,” Botha, Mohan et al wrote in a letter addressed to Wojcicki. “Whilst we proceed to wholeheartedly fortify the Corporate’s venture and imagine deeply within the price of the customised well being and wellness providing that you’ve articulated, it is usually transparent that we fluctuate at the strategic route for the Corporate going ahead.”
Because of that distinction—and the truth that Wojcicki controls 49% of 23andMe votes—they resigned. Wojcicki is now the one board member left.
In an interior memo Wojcicki circulated in a while after the mass resignation, she mentioned the verdict left her “shocked and upset.” However in spite of the drive, she’s bullish on taking the corporate non-public, announcing it’s “nonetheless the most efficient plan for the corporate.” She’s now “right away” at the hunt for brand new impartial administrators who fortify that plan, and mentioned extra updates would practice on Thursday.
The corporate has been flailing this 12 months. Final month, in a contemporary bid for money, it all started writing prescriptions for GLP-1 weight reduction medicine like Ozempic and Wegovy via its telehealth subsidiary, Lemonaid Well being.
It’s now not sufficient. DNA check gross sales have dropped off, a analysis collaboration with GlaxoSmithKline concluded ultimate 12 months, and a contemporary information breach impacted just about 7 million consumers, which resulted in a hurry of proceedings and a $30 million agreement. As soon as valued at $3.5 billion, 23andMe’s marketplace cap now hovers underneath $200 million.
However, the drug building and genetic sequencing that the company has been throwing its weight in the back of will in the end undergo fruit, Wojcicki instructed The Gentleman Report in February. “The imaginative and prescient and the place we’re going is forged, however the trail to get there may be extra turbulent.” Sadly, the board is not prepared to stick the direction.
