The move is almost certainly the final nail in the coffin of the embattled company known for its mail-order DNA testing kit. Since going public through a merger with a special purpose acquisition company (SPAC) in 2021, 23andMe has never turned a profit. Its IPO day price was $10; so far, it has yet to reach a $1 valuation in 2024. After all of its independent directors resigned on Tuesday, the stock fell to its lowest point: $0.30. (As of midday Wednesday, it is back at $0.36.)
The board includes Roelof Botha of Sequoia Capital and Neal Mohan, who took over as CEO of YouTube last year after Susan Wojcicki, Anne’s late sister, resigned.
“After months of work, we have yet to receive a fully funded, carefully crafted and actionable proposal from you that is in the best interests of unaffiliated shareholders,” Botha, Mohan et al. wrote in a letter to Wojcicki. “While we continue to wholeheartedly support the Company’s mission and firmly believe in the value of the personalized health and wellness offering you have outlined, it is also clear that we disagree on the Company’s strategic direction for the future.”
Because of this disagreement—and the fact that Wojcicki controls 49% of 23andMe’s voting rights—they resigned. Wojcicki is now the only remaining board member.
In an internal memo circulated by Wojcicki shortly after the mass resignations, she said the decision had “surprised and disappointed” her. But despite the pressure, she is optimistic about taking the company private, saying it is “still the best plan for the company.” She is now “immediately” looking for new independent directors to support that plan, and said further updates would follow on Thursday.
The company has struggled this year. Last month, in an attempt to raise money, it began writing prescriptions for GLP-1 weight-loss drugs such as Ozempic and Wegovy through its telemedicine subsidiary Lemonaid Health.
But that’s not enough. Sales of DNA testing have declined, a research collaboration with GlaxoSmithKline ended last year, and a recent data breach affected nearly 7 million customers, leading to a flood of lawsuits and a $30 million settlement. 23andMe’s market cap, once worth $3.5 billion, is now under $200 million.
Still, the drug development and genetic sequencing the company is pushing for will eventually bear fruit, Wojcicki said. CNN in February. “The vision and goals are solid, but the path to get there is more turbulent.” Unfortunately, the board is no longer willing to stay the course.
