23andMe announced its Chapter 11 filing and the resignation of its co-founder and CEO, Anne Wojcicki. This announcement comes after a challenging year for the company, as a data breach caused a significant drop in demand for its ancestry testing kits.
The human genetics and biotechnology company stated that it has “initiated voluntary Chapter 11 proceedings in the U.S. Bankruptcy Court for the Eastern District of Missouri to facilitate a sale process to maximize the value of its business.” The company intends to continue business as normal throughout the sale process.
The company also announced that Anne Wojcicki is resigning effective immediately under a mutual agreement. She will remain a member of 23andMe’s Board. Joe Selsavage, the company’s CFO has been named Interim CEO.
Mark Jensen, Chair of 23andMe’s Board of Directors, told investors, “We expect the court-supervised process will advance our efforts to address the operational and financial challenges we face, including further cost reductions and the resolution of legal and leasehold liabilities. We believe in the value of our people and our assets and hope that this process allows our mission of helping people access, understand and benefit from the human genome to live on for the benefit of customers and patients.”
Today, shares of 23andMe dropped 46% to 96 cents.
By CEO NA Editorial Staff
