Genetic testing company 23andMe is filing for bankruptcy as it tries to find a buyer amid slowing sales four years after going public. The company’s CEO, Anne Wojcicki, is stepping down as the business struggles to find new investors.
In January, 23andMe announced its intention to explore options for a sale due to declining demand and the fallout of a major data breach in 2023, which affected 6.9 million users. The company has also laid off about 40% of its workforce and seen its stock price drop below $1, putting it at risk of being delisted from the NASDAQ.
23andMe was once the leading name in DNA self-testing, with users paying up to $99 for kits that provided insights into their genetic makeup, potential relatives, and ancestry. However, the company’s momentum slowed down after its $3.5 billion public offering in 2021.
For those concerned about what might happen to their data in a sale, there are options available. Users can download their information and delete their account, asking the company to discard their DNA material as well. This will prevent future research from using their DNA, but it cannot be removed from existing research.
Arthur Caplan, head of medical ethics at NYU’s Grossman School of Medicine, has warned that users should “get their data out” due to concerns about customer privacy and data misuse. He predicts the company’s business model was flawed, with a focus on reselling DNA data rather than providing reliable ancestry information.
Caplan warns that there is no guarantee of customer privacy under a new owner, and the genetic data could be used in unintended ways, such as advertising or influencing insurance eligibility. With 23andMe’s sale, users must consider the risks and take action to protect their sensitive genetic information.
Source: https://www.cnet.com/health/medical/23andme-has-filed-for-bankruptcy-get-your-data-out-of-there