The move is almost certainly the final nail in the coffin for the troubled company known for its mail-order DNA testing kit. Since going public via 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 in 2024, it has yet to reach a $1 valuation. After all of its independent directors resigned on Tuesday, the stock fell to its lowest level: $0.30. (By midday Wednesday, it was back at $0.36.)
The board includes Sequoia Capital’s Roelof Botha as well as Neal Mohan, who took over as CEO of YouTube last year after the resignation of Susan Wojcicki, Anne’s late sister.
“After months of work, we have yet to receive from you a fully funded, fully vetted, and actionable proposal that is in the best interest of the unaffiliated shareholders,” Botha, Mohan et al wrote in a letter 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 of the company going forward.”
Because of this difference 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 released shortly after the mass resignations, Wojcicki said the decision left her “surprised and disappointed.” 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 who support the plan, and said further updates would follow Thursday.
The company has struggled this year. Last month, as part of a recent funding push, it began prescribing GLP-1 weight-loss drugs like Ozempic and Wegovy through its telehealth subsidiary, Lemonaid Health.
It’s not enough. Sales of DNA tests have plummeted, a research collaboration with GlaxoSmithKline ended last year, and a recent data breach affected nearly 7 million customers, leading to a wave of lawsuits and a $30 million settlement. Once valued at $3.5 billion, 23andMe’s market cap now hovers below $200 million.
Still, the drug development and genetic sequencing the company has been putting its weight behind will eventually pay off, Wojcicki said. CNN in February. “The vision and direction we are taking are strong, but the path to get there is more turbulent.” Unfortunately, the board is no longer willing to stay the course.
