Just when it seemed like things were settling down for genetic testing company 23andMe after proposing a $30 million settlement for a data breach lawsuit, another storm hit. Seven independent directors of the company’s board resigned in a pointed letter to CEO Anne Wojcicki, leaving her as the sole remaining member.
The resigning directors, including YouTube CEO Neal Mohan and Sequoia VC Roelof Botha, called out Wojcicki for failing to present a fully financed proposal to take the company private over the past five months. They expressed that their strategic vision for 23andMe differed from Wojcicki’s and felt it was in the best interest of shareholders to step down rather than engage in prolonged disagreements.
Wojcicki, who founded the company in 2006, holds 49% of all votes in 23andMe. Despite submitting a proposal to buy back shares and take the company private, the special committee rejected her offer, claiming it wasn’t beneficial for shareholders.
In response to the resignations, Wojcicki reassured employees that finding replacement directors was her top priority and emphasized that taking 23andMe private would pave the way for long-term success.
Once valued at $6 billion shortly after going public in 2021, 23andMe now faces a plummeting stock price, currently at just 34 cents per share. With a deadline approaching to boost its stock price or risk being delisted, the company is under pressure to turn things around.
Despite recent challenges, including a data breach affecting millions of accounts, 23andMe continues to offer its popular ancestry and health predisposition kits while also venturing into in-house drug development. The company is determined to navigate through these turbulent times and emerge stronger than ever.
With a mix of uncertainty and potential ahead, the future of 23andMe hangs in the balance as it navigates through a changing landscape in the genetic testing industry.