23andMe’s Fall: From $6 billion genetic testing company to near collapse; what happens to your DNA data?

Earlier this year, we covered the dramatic rise and fall of 23andMe, a genetic testing company once valued at $6 billion. A lot has changed since then. On September 17, 2024, the entire board of directors resigned after founder and CEO Anne Wojcicki made an offer to buy the company for just 40 cents per share—a fraction of its previous value.

Just three years ago, 23andMe was a Wall Street and Silicon Valley favorite. Now, the company faces delisting from Nasdaq and is entangled in over 30 lawsuits stemming from a data breach that exposed sensitive information of nearly 7 million customers. Despite being in business for 18 years and raising $861 million from investors, the company has yet to turn a profit, and its stock is hovering close to zero.

Once a tech unicorn, 23andMe has seen its value plummet by 96% since reaching a high of $17.65 per share in early 2021 and now trading at $0.28 as of the time of writing. Today, its shares are trading at around 70 cents. The company has been warned by Nasdaq that it must raise its stock price above $1 within three months or risk being delisted.

23andMe CEO Anne Wojcicki (Credit: Peter DaSilva)

CEO Anne Wojcicki recently suggested the possibility of selling the company, which would include the DNA data of its 15 million customers—a prospect that has sparked concern among users. Given 23andMe’s uncertain future, many are worried about the fate of their personal and genetic data.

The company has faced significant challenges, particularly after a 2023 data breach exposed the personal and genetic details of 6.9 million users, specifically targeting Ashkenazi Jewish and Chinese customers. This breach led to a $30 million settlement in a class-action lawsuit, with 23andMe offering three years of security monitoring to affected users. Financially, the company reported a $69.4 million loss on $40.4 million in revenue for the second quarter of 2024, adding to its woes.

In response to these struggles, Wojcicki has been exploring the option of taking the company private. However, the road ahead remains difficult as 23andMe faces mounting pressure to stay afloat.

The Fail of 23andMe and Your Privacy – How Do You Delete Your DNA Data?

Adding to its troubles, last year 23andMe confirmed that hackers had accessed the ancestry data of 6.9 million users, including the personal details of some of the wealthiest individuals in the U.S. and Western Europe. Initially, the company claimed only 14,000 users were affected, but later reports revealed the breach was much larger.

As 23andMe’s future remains uncertain, customers are left wondering how to protect their data. If you’re a 23andMe user, there are a few steps you can take:

1. Download Your DNA Data: Ensure you have a copy of your genetic data saved. This is important for any platform you use, including 23andMe, AncestryDNA, FamilyTreeDNA, or MyHeritage DNA.
2. Consider Deleting Your Account: If you’re concerned about the company’s future or the potential sale of your data, you may want to request your account be deleted. This will erase all genetic reports and end any paid memberships you may have.

Founded in 2006 by Linda Avey, Paul Cusenza, and Anne Wojcicki, 23andMe was a trailblazer in the personal DNA testing market, offering consumers genetic insights into their ancestry and health. Despite its initial success, the company has struggled with profitability. Its business model, which relied on customers taking a one-time test, forced 23andMe to continuously seek new revenue streams, including unsuccessful ventures into subscription services and drug development.

For a deeper dive into the company’s history, challenges, and current state, you can check out the YouTube video below from Wall Street Millennial. It breaks down 23andMe’s journey and the missteps that led to its downfall, while also reflecting on whether the company can turn things around. The fate of 23andMe is still hanging in the balance, and only time will tell if it can recover.