DNA testing firm 23andMe has filed for bankruptcy protection, citing financial distress. Co-founder and CEO Anne Wojcicki resigned immediately after the announcement. The company plans to sell itself under court supervision while assuring customers that their data will remain secure.
Founded in 2006, 23andMe went public in 2021 but has never turned a profit. It settled a lawsuit last month over a 2023 data breach, which exposed personal information of nearly seven million customers. The company has struggled to redefine its business model and make use of its vast genetic database.
The firm’s massive trove of data was initially touted as a potential asset for drug development but ultimately proved unsuccessful. Efforts to launch a subscription service also failed. In the wake of Wojcicki’s resignation, the board chair Mark Jensen has assured customers that safeguarding their data will remain a top priority in any future transaction.
The company’s financial struggles have raised concerns among users about what happens to the DNA they shared with 23andMe. As special category data under UK law, this genetic information offers limited protections if the firm goes bust or changes hands.
Source: https://www.bbc.com/news/articles/c9q4r9xy9wro