(ProsperNews.net) – In a dramatic shake-up for DNA testing company 23andMe, all seven independent members of its board of directors resigned this week, leaving CEO Anne Wojcicki as the sole remaining board member. This mass resignation marks a significant leadership collapse for the once highly-regarded Silicon Valley firm, which has been struggling financially since its IPO in 2021.
The resignations come amid ongoing disputes over Wojcicki’s plans to take 23andMe private. Since merging with a Special Purpose Acquisition Company (SPAC) in 2021, the company has faced declining fortunes, failing to turn a profit and watching its stock price drop from $10 at its IPO to less than $1 in 2024. The departure of the independent directors caused the stock to hit an all-time low of $0.30 on Tuesday, before recovering slightly to $0.36 by midday Wednesday.
Notable board members who resigned include Roelof Botha of Sequoia Capital and YouTube CEO Neal Mohan. In a letter to Wojcicki, the departing directors cited the absence of a “fully financed, fully diligenced, actionable proposal” that would protect the interests of independent shareholders. While they voiced support for 23andMe’s mission, they acknowledged that strategic disagreements had become insurmountable.
Wojcicki, who holds 49 percent of the company’s voting power, expressed shock and disappointment at the mass resignation in an internal memo. She remains determined to pursue her plan to take the company private, insisting it is “still the best plan for the company.” Wojcicki has initiated an immediate search for new independent directors who share her vision and promised to provide further updates on the company’s direction.
Once valued at $3.5 billion, 23andMe has faced numerous challenges in recent years. Sales of its DNA testing kits have declined, a research partnership with GlaxoSmithKline ended in 2023, and a significant data breach affecting nearly 7 million customers resulted in lawsuits and a $30 million settlement. To improve cash flow, 23andMe recently began prescribing popular weight loss medications like Ozempic and Wegovy through its telehealth service, Lemonaid Health.
Despite these setbacks, Wojcicki remains optimistic about the company’s future, especially its drug development and genetic sequencing initiatives. In a February interview with CNN, she acknowledged the company’s turbulent journey but maintained confidence in its long-term vision, stating, “the vision and where we’re going is solid.”
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