South San Francisco-based genetic testing enterprise 23andMe noticed its shares plunge greater than 50% Monday after the corporate introduced it had filed for Chapter 11 chapter safety.
The corporate introduced Sunday it should search court docket authorization to promote considerably all of its belongings, calling it “one of the best path ahead to maximise the worth of the enterprise,” in response to a submitting within the U.S. Chapter Court docket for the Jap District of Missouri.
Chief Government Anne Wojcicki will resign however stay on the corporate’s board, the announcement mentioned.
Greater than 15 million individuals have offered 23andMe with DNA samples, representing a trove of genetic data that might be offered in chapter proceedings.
However the firm struggled to construct a worthwhile enterprise round DNA testing and its efforts to license knowledge to pharmaceutical corporations by no means caught on.
California Legal professional Normal Rob Bonta issued a warning final week to remind shoppers of their proper to have their genetic knowledge deleted. 23andMe clients can delete their knowledge by logging onto their account.
“California has sturdy privateness legal guidelines that enable shoppers to take management and request that an organization delete their genetic knowledge,” Bonta mentioned. “Given 23andMe’s reported monetary misery, I remind Californians to contemplate invoking their rights and directing 23andMe to … destroy any samples of genetic materials held by the corporate.”
Board of Administrators Chair Mark Jensen mentioned in a press release that the corporate will prioritize the safety of client knowledge all through a gross sales course of. Wojcicki mentioned in a submit on X over the weekend that she goals to purchase the corporate’s belongings.
“Information privateness shall be an vital consideration in any potential transaction,” Jensen mentioned. “We’re dedicated to persevering with to safeguard buyer knowledge and being clear concerning the administration of person knowledge going ahead.”
23andMe shares had been buying and selling at 89 cents on Monday following Bonta’s warning.
With a purpose to adjust to Nasdaq itemizing necessities, the corporate did a reverse, 20:1 share cut up final fall.
