23andMe Files For Bankruptcy and CEO Steps Down

Once hailed as a revolutionary force in consumer genetics and valued at a staggering $6 billion, 23andMe has now entered Chapter 11 bankruptcy protection—marking a stunning collapse for the biotech pioneer that promised to change how we understand our DNA, our health, and our heritage.

The filing, made late Sunday in a Missouri federal court, comes with sweeping changes at the top. Anne Wojcicki, the company’s co-founder and longtime CEO, resigned effective immediately. She will remain on the board but hand over executive duties to Joseph Selsavage, the company’s chief financial and accounting officer, who will now serve as interim CEO.

In a candid message on X (formerly Twitter), Wojcicki acknowledged both the company’s achievements and its recent struggles. “There is no doubt that the challenges faced by 23andMe through an evolving business model have been real,” she wrote, though she maintained her belief in the company’s future—even hinting at plans to pursue it as an independent bidder during the restructuring process.

It’s a remarkable fall for a firm that once captivated both Wall Street and the general public with its direct-to-consumer DNA kits. Launched in 2006, 23andMe offered customers a chance to uncover their ancestry, health risks, and genetic traits—all from a simple saliva sample.

It was science made personal, sleek, and accessible. By the time it went public in 2021 through a SPAC merger, it was valued at $3.5 billion and considered a cornerstone of a new era in health tech.

But the warning signs had been mounting. Revenue proved inconsistent. Efforts to build out drug discovery and therapeutics divisions failed to materialize into sustainable businesses. In less than three years, the company’s market capitalization plunged from billions to just under $20 million.

Then came the blow that no data-driven company wants: a massive security breach. In October 2023, hackers gained access to the personal information of nearly 7 million customers, sparking widespread concern about the privacy of sensitive genetic data. California’s Attorney General issued a consumer alert last week, urging residents to consider deleting their data from the site.

Though the company insists that customer data management will remain unchanged during bankruptcy proceedings, trust—once its most valuable currency—has been deeply shaken.

Now, 23andMe enters a 45-day window to solicit qualified bids for its assets. If the court approves its Chapter 11 plan, the company will attempt to sell itself, with Wojcicki among the potential bidders. The bankruptcy filing shows the company holds between $100 million and $500 million in both assets and liabilities, giving a sense of the scale—and complexity—of its financial situation.