Genetics testing company 23andMe has filed for Chapter 11 bankruptcy protection in the U.S. to initiate the sale of its assets, marking a significant turning point for the company that has struggled to turn a profit since going public in 2021.

In a statement, Mark Jensen, chair and member of the Special Committee of the Board of Directors, explained that the company has determined that a court-supervised sale process is the best path to maximize the value of the business. The move is expected to address the operational and financial challenges the company faces, including further cost reductions and the resolution of legal and leasehold liabilities.

Interestingly, 23andMe's co-founder and CEO Anne Wojcicki has announced that she is leaving the company to become an independent bidder for the company. Wojcicki expressed her support for the company and its mission, stating that she intends to be a bidder in the court-supervised process. This move raises questions about the future direction of the company and the potential implications for its customers and employees.

23andMe has faced significant challenges in recent years, including a massive cyberattack in 2023 that resulted in the theft of sensitive customer data, including genetic predisposition and ancestry reports. The company settled a lawsuit related to the data breach for $30 million in September 2024. Wojcicki had previously expressed interest in taking the company private, but it appears that the company's financial struggles have led to this more drastic measure.

The company's market capitalization has plummeted more than 99% from a peak of $6 billion, with its stock currently trading at $1.79. At the time of writing, the company's market value stands at around $48 million. The bankruptcy filing and potential sale of assets raise significant questions about the future of the company and its mission to help people access, understand, and benefit from the human genome.

The implications of this move are far-reaching, with potential consequences for the genetics testing industry as a whole. As the company navigates this complex process, it remains to be seen what the future holds for 23andMe and its customers. One thing is certain, however: the company's struggles serve as a stark reminder of the challenges faced by companies operating in the highly competitive and rapidly evolving biotech sector.

As the story continues to unfold, it will be important to watch how the court-supervised sale process plays out and what impact it will have on the company's customers, employees, and the wider industry. One thing is certain: the fate of 23andMe hangs in the balance, and the consequences of its bankruptcy filing will be felt for years to come.