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23andMe CEO and co-founder Anne Wojcicki resigned on Sunday, Mar. 23, so she could bid for the company independently. Joseph Selsavage, the company’s chief financial and accounting officer, is now serving as interim CEO, according to a filing with the U.S. Securities and Exchange Commission.
Wojcicki confirmed the move in a social media post on Monday, Mar. 24.
"While I am disappointed that we have come to this conclusion and my bid was rejected, I am supportive of the company and I intend to be a bidder," she posted.
Wojcicki co-founded the California-based company in 2006 and helped build it into one of the biggest names in direct-to-consumer DNA testing. At its peak, 23andMe was valued at $6 billion and went public in 2021.
The company's stock has plunged in recent years. It now holds a market value of about $25 million, CNBC reported.
Connecticut Attorney General William Tong issued a consumer alert urging residents to take action to protect their data, especially in light of the company's bankruptcy.
"23andMe collected incredibly sensitive genetic data from millions of Americans, and their inability to protect that data irreparably harmed their business," said Tong. "Regardless of this bankruptcy filing, they need to honor their promises to protect consumer privacy and the security of the data they maintain. Consumers may also wish to proactively protect their own data, including deleting their genetic data, requesting the destruction of their test sample, and revoking authorization for 23andMe to share access with third-party researchers.
"We are watching this bankruptcy filing closely and expect to be actively engaged to ensure sensitive records are protected and 23andMe is held accountable."
California's attorney general also issued a similar warning about 23andMe.
The breach, discovered in October 2023, exposed the personal data of nearly seven million Americans. Tong said his office has been monitoring 23andMe as part of an ongoing investigation.
Despite filing for bankruptcy, 23andMe said in a statement that it "intends to continue operating its business in the ordinary course throughout the sale process" and there are "no changes to the way the company stores, manages, or protects customer data."
Wojcicki said she still believes in the future of the company and its mission, despite the restructuring.
"We have had many successes but I equally take accountability for the challenges we have today," she wrote. "There is no doubt that the challenges faced by 23andMe through an evolving business model have been real, but my belief in the company and its future is unwavering."
Wojcicki also thanked the more than 15 million customers who have used 23andMe, as well as those who consented to research.
"What made so many of our innovations possible were the 85 percent of our customers who opted in to research," she said. "Thanks to them they have empowered an incredible platform for discovery. You enabled our pursuit into novel drug discovery and our 50 programs with GSK. In addition, over 250 publications have come out because of you and we have meaningfully impacted the research world."
If approved by the court, 23andMe plans to solicit bids for its assets over the next 45 days.
The company’s estimated assets and liabilities each fall between $100 million and $500 million, according to the bankruptcy filing.
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