DNA testing firm 23andMe files for bankruptcy, CEO Anne Wojcicki resigns

[Shawn Knight]

What just happened? DNA testing specialist 23andMe has filed for Chapter 11 bankruptcy protection in order to facilitate a sale. Mark Jensen, chair and member of the special committee of the board of directors, said that after a thorough evaluation, it was decided that a court-supervised sale process would be the best path forward to maximize the value of the business.

23andMe was founded in 2006 as a direct-to-consumer genetics testing specialist and became a publicly traded company in June 2021, trading under the ticker symbol "ME." At the time, co-founder and CEO Anne Wojcicki said the company had over 11 million users that were using genetics to transform how they diagnose, treat, and prevent human disease.

At its peak, 23andMe's valuation topped $6 billion, but things wouldn't last.

The company struggled to recover from a massive data breach that started in April 2023 and ran for a full five months. It was later revealed that hackers had gained access to information on around 5.5 million people that were using the company's DNA Relatives feature. Exposed data reportedly included names, birth years, ancestry reports, and more. Another 1.4 million users reportedly had family tree data exposed in the breach, a 23andMe rep told TechCrunch.

Consumers also sort of lost interest in "at-home" DNA testing, which some view as a "one and done" model that doesn't lend itself to repeat business.

The company attempted to restructure, announcing plans late last year to lay off 40 percent of its workforce. The move was expected to save more than $35 million annually with a one-time expense of $12 million related to severance packages. It was perhaps a case of too little, too late.

Share value in 23andMe has cratered, and currently sits at just $0.92 per – down from an all-time high of more than $320.

The company also announced that Wojcicki is resigning as CEO, effective immediately, but will stay on as a member of the board. CFO Joe Selsavage has been appointed interim chief executive, we're told.

Image credit: National Cancer Institute

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DNA testing firm 23andMe files for bankruptcy, CEO Anne Wojcicki resigns

 

[Vulcanproject]

It was a single purchase business model with little extra to sell afterwards. Most people buy several more homes in their lifetime than these testing kits. You might be mildly interested, you might buy one as a novelty, that's it.

The idea that this company was valued at $6Bn four years ago and worthless today despite market conditions being little different for this product is the usual story of the absurdly overvalued tech firm.

 

[Squid Surprise]

The fact that there were 11 million people willing to pay a company to hold all of their genetic data (and other data like name, address, etc) still seems mind-blowing to me...

With so many bemoaning privacy, privacy and more privacy, a company like this was one data-breach away from destruction - which happened and, sure enough, destroyed them.

Not to mention it was a crappy business model to begin with as who would do this twice?

 

[RudyBob]

I did ancestry dot com. I really enjoyed seeing all the data. They still update my profile over 15 years or so later. One and done? So what? There are millions and millions of people to go. All they need is an episode of some crap Netflix show that gets into this stuff and blam-O business surges

 

[Squid Surprise]

I did ancestry dot com. I really enjoyed seeing all the data. They still update my profile over 15 years or so later. One and done? So what? There are millions and millions of people to go. All they need is an episode of some crap Netflix show that gets into this stuff and blam-O business surges

You realize that you have no guarantee that any of the “conclusions” they sent you were accurate, right? And now they can sell your data to other unscrupulous companies - that is, assuming it just wasn’t given away in a data breach…

 

[kiwigraeme]

Just as many here who are sceptical of AI , I'm sceptical of this DNA stuff . Not saying no validity, there is, but it's representing the info and what it means. Given all the biases people have, poor grasp of odds and statistics etc .
Also not sure , but could maybe cause insurance issues in say USA . ie one of the get outs legally is don't ask, don't find out,

What was the movie Gattaca??? where denied a job on DNA. A propensity to a condition, does not mean it will be expressed - maybe even severity who knows

Exercise , socialise, have curiosity, eat a good diet will prevent many inflections. Normally if problem, already a family history , worth checking if double gene etc

Plus so many BS YT videos like Statins don't work - eg 2 year study shows 4 day increase in life expectancy etc . Really just BS reporting as really should be calculated out for rest of life. Statins effectiveness vs cons , is highly dependant on person . Many people could benefit far more by lifestyle changes with no downsides but cutting out some indulgent eating , but for others a great plan for lowest amount needed could add 9 years plus to life on average

 

[Theinsanegamer]

The fact that there were 11 million people willing to pay a company to hold all of their genetic data (and other data like name, address, etc) still seems mind-blowing to me...

With so many bemoaning privacy, privacy and more privacy, a company like this was one data-breach away from destruction - which happened and, sure enough, destroyed them.

Not to mention it was a crappy business model to begin with as who would do this twice?

Look on the bright side. If it was JUST the US, that would mean only 3% of the population bought into the hype, the other 97% flat out ignored it.

 

[RudyBob]

You realize that you have no guarantee that any of the “conclusions” they sent you were accurate, right? And now they can sell your data to other unscrupulous companies - that is, assuming it just wasn’t given away in a data breach…

Not being mean but my reply is "I don't give a ****." The conclusions are as accurate as the record in my Log O Life book that my mother started in 1952. As for my genetic data being "out there" So What? No data is safe anywhere and I am not a basement sitter. I keep as much as I can close but Pal, this isn't 1938.

 

[Squid Surprise]

Not being mean but my reply is "I don't give a ****." The conclusions are as accurate as the record in my Log O Life book that my mother started in 1952. As for my genetic data being "out there" So What? No data is safe anywhere and I am not a basement sitter. I keep as much as I can close but Pal, this isn't 1938.

Yeah… but you PAID for it to be out there… and your DNA wouldn’t be available to the public …

 

[sdms96825]

You realize that you have no guarantee that any of the “conclusions” they sent you were accurate, right? And now they can sell your data to other unscrupulous companies - that is, assuming it just wasn’t given away in a data breach…

Correct. They tagged Rudy as a Democrat!

 

[lonetac]

Not being mean but my reply is "I don't give a ****." The conclusions are as accurate as the record in my Log O Life book that my mother started in 1952. As for my genetic data being "out there" So What? No data is safe anywhere and I am not a basement sitter. I keep as much as I can close but Pal, this isn't 1938.

You and I tend to disagree on a lot of things but I have some friends I have known my whole life who did the ancestry.com thing and they have the same experience.

The results were very accurate according to what they knew going back as far as the revolution and then learning some new things beyond that.

 

[lonetac]

Yeah… but you PAID for it to be out there… and your DNA wouldn’t be available to the public …

Respectfully, does it matter? So someone has someone's DNA profile. I dont think its a risk as of yet with today's technology. And anyone posting here will likely be worm food before it becomes an issue.

I havent done one but Ive been super curious and I know a lot of my family ancestry already. It has me curious how accurate it would be.

 

[RudyBob]

Correct. They tagged Rudy as a Democrat!

Best of the Day!!

 

[Plutoisaplanet]

You realize that you have no guarantee that any of the “conclusions” they sent you were accurate, right? And now they can sell your data to other unscrupulous companies - that is, assuming it just wasn’t given away in a data breach…

This is why I didn't send my test kit in when I got it as a gift.

Respectfully, does it matter? So someone has someone's DNA profile. I dont think its a risk as of yet with today's technology. And anyone posting here will likely be worm food before it becomes an issue.

I havent done one but Ive been super curious and I know a lot of my family ancestry already. It has me curious how accurate it would be.

You haven't thought about this much have you? The value of DNA info to hackers is the same as the value to yourself. It's not the DNA, it's knowing all of your family and being able to sell this. If someone wants to target you in a phishing attack, this is the first place they're going to look for information. And if you think they have no reason to target you, just wait until there are automated phishing attacks powered by AI with all personal information about you supplied to it. You'll get an email that sounds like it could really be from your distant cousin, starts connecting and getting to know each other, asks to visit, and gets you to buy them a gift card for a plane ticket because they can't afford one since they're in their 20s. This is just one use case I came up with at the top of my head.

 

[lonetac]

This is why I didn't send my test kit in when I got it as a gift.

You haven't thought about this much have you? The value of DNA info to hackers is the same as the value to yourself. It's not the DNA, it's knowing all of your family and being able to sell this. If someone wants to target you in a phishing attack, this is the first place they're going to look for information. And if you think they have no reason to target you, just wait until there are automated phishing attacks powered by AI with all personal information about you supplied to it. You'll get an email that sounds like it could really be from your distant cousin, starts connecting and getting to know each other, asks to visit, and gets you to buy them a gift card for a plane ticket because they can't afford one since they're in their 20s. This is just one use case I came up with at the top of my head.

I have thought about and your fear of it is not my reality.

Anyone can get your info for a few bucks.

Knowing who my ancestor was 100 years ago provides absolutely no value.

They can't do anything with my DNA and anyone clicking on an email from a long lost relative deserves what happens.

I'm not gullible. I know my family. Long lost relative? Get lost, I don't gaf. I get 300 spam emails a day.

I work in cybersecurity teaching folks how to avoid email phising and smishing. Protecting digital identities and pii data.

Least of my worries.

No tangible threat until the DNA can be sequenced or whatever the word is and cloning or replicating.

I won't say your concerns are not valid but certainly not to me. I don't live in fear of everything and everyone

 

[RudyBob]

This is why I didn't send my test kit in when I got it as a gift.

Once it is given to you it is yours to do with as you please. I hope you did not say thank you to the gifter.

You haven't thought about this much have you? The value of DNA info to hackers is the same as the value to yourself. It's not the DNA, it's knowing all of your family and being able to sell this. If someone wants to target you in a phishing attack, this is the first place they're going to look for information. And if you think they have no reason to target you, just wait until there are automated phishing attacks powered by AI with all personal information about you supplied to it. You'll get an email that sounds like it could really be from your distant cousin, starts connecting and getting to know each other, asks to visit, and gets you to buy them a gift card for a plane ticket because they can't afford one since they're in their 20s. This is just one use case I came up with at the top of my head.

Again, all this data is out there in multiple places. The least secure of which is the governments: state, federal, local, hospital, etc. Be afraid if you want. There is plenty to worry about this is not it