The move is almost certainly the final nail in the coffin for the embattled company known for its mail-order DNA-testing kit. Since going public via merger with a special purpose acquisition company (SPAC) in 2021, 23andMe has never turned a profit. Its price on IPO day was $10; so far in 2024, it has yet to reach a $1 valuation. Following the resignation of all its independent directors Tuesday, the stock fell to its rock bottom: $0.30. (As of midday Wednesday, it’s back to $0.36.)
The board includes Sequoia Capital’s Roelof Botha as well as Neal Mohan, who took the helm as CEO of YouTube last year after Susan Wojcicki, Anne’s late sister, stepped down.
“After months of work, we have yet to receive from you a fully financed, fully diligenced, actionable proposal that is in the best interests of the non-affiliated shareholders,” Botha, Mohan et al wrote in a letter addressed to Wojcicki. “While we continue to wholeheartedly support the Company’s mission and believe deeply in the value of the personalized health and wellness offering that you have articulated, it is also clear that we differ on the strategic direction for the Company going forward.”
Due to that difference—and the fact that Wojcicki controls 49% of 23andMe votes—they resigned. Wojcicki is now the only board member left.
In an internal memo Wojcicki circulated shortly after the mass resignation, she said the decision left her “surprised and disappointed.” But despite the pressure, she’s bullish on taking the company private, saying it’s “still the best plan for the company.” She’s now “immediately” on the hunt for new independent directors who support that plan, and said more updates would follow on Thursday.
The company has been flailing this year. Last month, in a recent bid for cash, it began writing prescriptions for GLP-1 weight loss drugs like Ozempic and Wegovy through its telehealth subsidiary, Lemonaid Health.
It’s not enough. DNA test sales have dropped off, a research collaboration with GlaxoSmithKline concluded last year, and a recent data breach impacted nearly 7 million customers, which led to a rush of lawsuits and a $30 million settlement. Once valued at $3.5 billion, 23andMe’s market cap now hovers below $200 million.
Nonetheless, the drug development and genetic sequencing that the firm has been throwing its weight behind will eventually bear fruit, Wojcicki told CNN in February. “The vision and where we’re going is solid, but the path to get there is more turbulent.” Unfortunately, the board is no longer willing to stay the course.
