Anne Wojcicki, once a prominent figure in Silicon Valley and the driving force behind 23andMe, has stepped down as the CEO following the company’s declaration of bankruptcy. In a statement shared on social media, Wojcicki acknowledged both the successes and challenges faced by the company. Despite the recent turmoil within the board and share prices, she expressed unwavering belief in the future of 23andMe.
The bankruptcy of 23andMe has left its 15 million customers concerned about the fate of their DNA data. While the company has assured that there will be no changes to how customer data is handled, uncertainties linger. Wojcicki’s resignation comes after mounting pressure, including the resignation of the entire board last fall, questioning her legacy as a leader in consumer health rights.
The history of 23andMe dates back to its founding in 2006 by Linda Avey, Paul Cusenza, and Anne Wojcicki, with the initial idea pitched to investors by Avey and Wojcicki. The company gained popularity in 2007 for offering DNA tests for ancestry and health risks, creating a valuable database for future research. Over the years, Wojcicki’s strategic decisions, such as venturing into drug discovery, have shaped the trajectory of 23andMe, leading to both successes and challenges.
As the saga of 23andMe unfolds, it serves as a reminder of the complexities of navigating the intersection of technology, health, and consumer data in the modern age.
At the South By Southwest (SXSW) Interactive Festival in Austin, Texas, on March 9, 2014, various conferences and festivals combine original music, independent films, and emerging technologies to encourage creative and professional development. This event, captured by photographer David Paul Morris/Bloomberg via Getty Images, showcases a unique blend of art and innovation.
Fast forward to November 22, 2015, when the FDA issues a warning letter to Wojcicki regarding 23andMe’s health testing kits providing customers with health and disease risk information. As a result, the company pulls its health results products from the market, hires regulatory experts, and later secures FDA approval for its consumer-focused genomic health tests, marking a significant milestone.
On July 25, 2018, a collaboration forms between GSK and 23andMe, granting GSK exclusive access to 23andMe’s database for research purposes. This partnership, initially set to last four years, extends to 2025 and yields potential drug targets, fostering advancements in medical treatments.
Further down the timeline, on June 16, 2021, 23andMe goes public through a SPAC deal backed by Richard Branson and Virgin Group, initially valuing the company at $6 billion. However, its value decreases to $3 billion by the year’s end, reflecting fluctuations in the market.
A pivotal moment occurs on November 1, 2021, as 23andMe acquires telehealth company Lemonaid Health for $400 million, aligning with Wojcicki’s vision of integrating DNA testing, drug research, and clinical medicine under one umbrella.
However, challenges arise on October 6, 2023, when a significant data breach exposes the DNA of millions, leading to a class-action lawsuit and a $30 million settlement in 2024. The breach highlights vulnerabilities in data security and prompts the company to enhance protective measures.
As of January 31, 2024, The Wall Street Journal publishes a critical report on 23andMe’s financial struggles and questions surrounding its profitability. Amidst industry downturns and internal scrutiny, Wojcicki explores the possibility of taking the company private, signaling a potential shift in strategy.
Throughout these significant milestones and challenges, 23andMe remains a prominent figure in the biotech landscape, navigating complexities and innovations in the pursuit of bridging genetics and healthcare.
The board states that they are looking for a proposal that is in the best interests of the shareholders not affiliated with the company. They also allow for the possibility of resubmitting the proposal at a later time. The deadline is extended again after the CEO of YouTube, Susan Wojcicki, passes away from lung cancer.
On September 18, 2024, the entire board of 23andMe resigns on the same day, citing limited options in a public letter. As the controlling shareholder, Wojcicki had rejected other offers, and the board had not received a better bid while the company was in a difficult situation. Prominent members such as Neal Mohan, CEO of YouTube, and Roelof Botha, head of Sequoia Capital, expressed their disagreement with Wojcicki’s strategic direction, despite believing in the company’s mission to personalize health care with genetic data.
In San Francisco on March 14, 2022, Anne Wojcicki, founder and CEO of 23andMe, and Marcus Wallenberg speak at an event during Prince Daniel’s Fellowship entrepreneurial journey.
To prevent delisting from NASDAQ, 23andMe undergoes a reverse stock split on October 16, 2024, as the share price had dropped below $1. In her first public interview since the board’s resignation on October 17, 2024, Wojcicki expresses her determination to turn the company around, refuting claims of her leadership style contributing to its downfall.
Following significant changes within the company, including layoffs and new board members, Wojcicki partners with New Mountain Capital on February 20, 2025, to propose buying 23andMe at a valuation of $75 million. Retail investors express concerns about the board accepting the offer. However, New Mountain Capital withdraws from the partnership and a new bid valued at $42 million is rejected by the board on March 2, 2025.
On March 24, 2025, 23andMe announces bankruptcy, raising data privacy issues. Anne Wojcicki steps down as CEO but announces plans to make another bid to buy the company, emphasizing the importance of consumer control and transparency over personal health data.
