23andMe Faces Delisting Risk Amid Financial Struggles

Founded in 2006 by Anne Wojcicki, 23andMe rose to fame by offering affordable genetic testing but now teeters on the edge of delisting from Nasdaq following alarming financial drops and privacy scandals. Once a leader in genetic consumer testing, with a valuation peaking at $6 billion and famed for its celebrity endorsements, the company faced a swift decline in revenue. Sales dropped by 46% by 2019, alongside increased concerns regarding the privacy of user data, particularly after a notable heinous crime investigation involving its genetic samples. Despite attempts to innovate through drug discovery and the launch of a public company via a SPAC in 2021, 23andMe ended fiscal year 2023 with a staggering $312 million loss. Compounding these challenges, a recent data breach in October affected nearly 7 million customers, further straining public trust. As the Nasdaq placed additional pressure through warnings, Wojcicki's efforts to salvage and potentially privatize the company faced resistance from a now-resigned board. With a deadline looming this November for a satisfactory proposal to avert delisting, 23andMe's future hinges on Wojcicki's next moves, including a potential turnaround strategy focused on generating valuable obesity treatments via telehealth.