Mar 24, 2025 - Health

23andMe files for bankruptcy, will seek a buyer

Illustration of a DNA strand with the middle link having a no-go sign — Illustration: Rebecca Zisser/Axios

Genetics testing company 23andMe has filed for Chapter 11 bankruptcy protection and launched a sale process, just weeks after rejecting a takeover offer from co-founder and CEO Anne Wojcicki.

Why it matters: The writing was on the wall when 23andMe's independent directors quit last fall, but it's still stunning to witness the dysfunctional destruction of the rare biotech unicorn to become a household name.

The big picture: There's no repeat incentive for consumers to keep testing their DNA, and the data 23andMe sold to drug developers wasn't proving valuable enough. It's a plan that made sense on paper but was hard to execute.

Don't be surprised if we see similar outcomes for functional medicine companies that rely on DNA testing subscriptions for revenue.

By the numbers: 23andMe, which went public via SPAC in 2021 at a $3.5 billion valuation, listed $277 million in assets and $215 million in liabilities. It also secured $35 million of DIP financing from JMB Capital Partners.

Shares closed Friday at $1.79 per share, or over 4x what Wojcicki offered, although they're tanking this morning.

The bottom line: Wojcicki last night stepped down as CEO, but remains on the board and still hopes to buy the business.

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23andMe files for bankruptcy, will seek a buyer

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