In a stunning collapse of leadership for the former Silicon Valley darling 23andMe, all seven independent members of the DNA testing company’s board of directors resigned en masse this week, leaving CEO Anne Wojcicki as the sole remaining board member.
Fortune reports that the mass resignation comes amidst a prolonged battle over Wojcicki’s plans to take the struggling DNA testing company private. Since its IPO via a SPAC merger in 2021, 23andMe has failed to turn a profit, with its stock price plummeting from $10 on IPO day to less than $1 in 2024. The resignation of the independent directors sent the stock to an all-time low of $0.30 on Tuesday, before a slight rebound to $0.36 by midday Wednesday.
The resigning board members, including Sequoia Capital’s Roelof Botha and YouTube CEO Neal Mohan, cited a lack of a “fully financed, fully diligenced, actionable proposal” from Wojcicki that would serve the interests of non-affiliated shareholders. In a letter to the CEO, they expressed their continued support for the company’s mission and personalized health and wellness offerings, but acknowledged irreconcilable differences regarding 23andMe’s strategic direction.
Wojcicki, who controls 49 percent of the company’s votes, was “surprised and disappointed” by the resignations, according to an internal memo. Despite the setback, she remains committed to taking 23andMe private, deeming it “still the best plan for the company.” The CEO announced an immediate search for new independent directors who align with her vision and promised further updates on Thursday.
The once-promising company, valued at $3.5 billion in its heyday, has faced numerous challenges in recent years. DNA test sales have declined, a research collaboration with GlaxoSmithKline concluded in 2023, and a data breach affecting nearly 7 million customers led to a flurry of lawsuits and a $30 million settlement. In an attempt to generate cash flow, 23andMe recently began prescribing popular weight loss drugs like Ozempic and Wegovy through its telehealth subsidiary, Lemonaid Health.
Despite the company’s struggles, Wojcicki remains optimistic about the potential of 23andMe’s drug development and genetic sequencing efforts. In a February interview with CNN, she acknowledged the turbulent path ahead but maintained that “the vision and where we’re going is solid.”
Read more at Fortune here.
