23andMe Is Laying Off 40% of Its Staff and Ending Its Therapeutics Push in Bid to Avert Collapse
23andMe may know a lot about its 14M customers, but it still hasn’t found a way to generate a profit from them. Since going public in 2021 via a SPAC merger, the personal genomics trailblazers valuation has plummeted from $3.5B to just $100M. Compounding its collapse, the genetic testing company has faced unprecedented tumult — including leaked genetic data, leadership turnover, and restructuring galore. Is failure in its genes?
Sequence this: CEO Anne Wojcicki has a prescription — taking the company private. But the board rejected her offer as “unsatisfactory,” and the full slate of directors resigned. With shares halved over the past six months, some believe Wojcicki may ultimately succeed in her buyout plan. After Tuesday’s earnings report, that possibility seems more likely.
- The DNA testing pioneer reported an 11.8% drop in revenue year-over-year to $44.1M, with a net loss of $59.1M — more than double its quarterly revenue.
- As a result, 23andMe announced it would lay off 40% of its workforce — or 200 employees — and shutter its therapeutics business, which had focused on cancer drug research.
In Its Genes
Ending its therapeutics business disappointed investors who were once assured that 23andMe’s genetic data could lead to new revenue streams beyond testing. The company will now seek licensing agreements and sales for its drug assets, hoping to bring in much-needed cash.
- The restructuring aims to save $35M — not quite enough to offset its big losses but enough to buy time while it seeks additional funding.
- Without the therapeutics unit, 23andMe plans to focus on its telehealth service, Lemonaid Health, and its annual 23andMe+ subscription.
Betting on longevity: As a last-ditch effort, 23andMe has launched a premium “longevity platform” subscription called 23andMe+ Total Health, which might speak to health-conscious consumers who have watched one too many Bryan Johnson videos. At $500 per month, it offers “exome sequencing, blood biomarker analysis, and expert clinician oversight” for detailed health tracking. However, this new service may not be enough to prevent the company from succumbing to its own ailing health.
