23andMe is considering a sale of the company as it weighs up strategic options, capping a torrid year for the genetic testing business.
A special committee of its directors’ board is considering various directions for the company in addition to a sale, including business combination, asset sales and licensing, and restructuring.
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The statement came on the same day the company revealed its Q3 results for the 2025 fiscal year, which demonstrated cash reserves of just under $80m. This figure, correct as of 31 December 2024, was down from $216.5m in March 2024. 23andMe stated that it would “need to raise additional liquidity to fund our operations and financial commitments.”
A pioneer in genetic heritage services, 23andMe has seen much of its share price wiped out in the past year as it struggles to find a sustainable business model. Once occupying a value of $6bn, the company diversified beyond DNA testing and started a drug research business along with more specific diagnostic insights for customers.
23andMe has already cut its workforce by 40% and closed its therapeutics business to reduce expenses.
Cyberattacks and subsequent lawsuits relating to data security breaches led to a mass resignation of its independent board of directors in September 2024. With the company on the verge of collapse for the past few months, there have been concerns about what happens to the large amount of stored data. 23andMe states in its terms and conditions that genetic data may be sold in the event of bankruptcy, sale or merger.
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By GlobalData23andMe did not immediately respond to Medical Device Network about the future of stored genetic data following today’s announcement of pursuing strategic options.
Suheel Yousuf Wani, a precision medicine consultant at Canary Oncoceutics, said in a social media post: “Experts point out that DNA testing kits are mostly a one-time purchase, limiting long-term revenue. Additionally, despite possessing one of the largest DNA databases globally, the company has secured only a few partnerships with pharmaceutical companies for medical research, further hindering its growth.”
23andMe is currently under a joint investigation by the UK’s Information Commissioner’s Office (ICO) and the Privacy Commissioner of Canada (OPC) for the data breach that occurred in October 2023.
At the time, UK Information Commissioner John Edwards said: “People need to trust that any organisation handling their most sensitive personal information has the appropriate security and safeguards in place. This data breach had an international impact.”
