Shares of 23andMe crashed in premarket trading on Monday after the genetic testing unicorn startup filed for bankruptcy in the US Bankruptcy Court for the Eastern District of Missouri, following a slide in demand for its ancestry kits and a data breach. The bankruptcy raises one alarming question about DNA security: What will happen to the genetic data of the company’s more than 15 million customers?
23andMe announced that its CEO, Anne Wojcicki, has resigned immediately and will remain on the company’s board of directors. She led the cash-burning startup that never turned a profit and once commanded a market capitalization of nearly $6 billion in late 2021. Shares plunged 44% in the premarket to $1.
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“After a thorough evaluation of strategic alternatives, we have determined that a court-supervised sale process is the best path forward to maximize the value of the business,” Mark Jensen, Chair and member of the Special Committee of the Board of Directors wrote in a statement.
Jensen said, “We expect the court-supervised process will advance our efforts to address the operational and financial challenges we face, including further cost reductions and the resolution of legal and leasehold liabilities. We believe in the value of our people and our assets and hope that this process allows our mission of helping people access, understand and benefit from the human genome to live on for the benefit of customers and patients.”
“We want to thank our employees for their dedication to 23andMe’s mission. We are committed to supporting them as we move through the process. In addition, we are committed to continuing to safeguard customer data and being transparent about the management of user data going forward, and data privacy will be an important consideration in any potential transaction,” he added. […]
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