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DNA-testing firm 23andMe faces financial collapse

Mar, 25, 2025 Hi-network.com

23andMe has filed for bankruptcy in the US after struggling with declining demand for its ancestry kits and a major data breach in 2023.

The firm, once valued at nearly$6 billion, has seen its market worth plummet, with shares dropping 50% to just 88 cents after co-founder Anne Wojcicki resigned as CEO. The company will continue operating during the sale process, securing$35 million in financing over the weekend.

Concerns have been raised about the fate of genetic data collected from customers, particularly as 23andMe has made multiple deals with pharmaceutical and biotech firms.

While the company insists the bankruptcy will not affect how data is managed, California's attorney general has urged users to delete their information amid privacy concerns. Experts warn that while accounts can be deleted, some data may still exist in anonymised form.

The firm's decline has been worsened by its inability to retain customers, as most users only purchase a kit once. The 2023 data breach, exposing the personal details of nearly 7 million users, further damaged its reputation, leading to a$30 million legal settlement.

Wojcicki, who had made several failed buyout attempts, has signalled her intention to bid again, but 23andMe has not disclosed any other potential buyers.

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