Anne Wojcicki, co-founder of the genetic testing company 23andMe, has received court approval to repurchase the company she helped establish nearly two decades ago. The acquisition, valued at $305 million, will be conducted through Wojcicki’s nonprofit, TTAM Research Institute. This development follows 23andMe’s Chapter 11 bankruptcy filing over three months ago.
The court’s decision allows TTAM to acquire “substantially all” of 23andMe’s assets, including its signature “Personal Genome Service” and Lemonaid Health subsidiary. The transaction is expected to close in the coming weeks, marking the end of a competitive bidding war with Regeneron Pharmaceuticals, which had initially offered $256 million for the company.
Background and Strategic Moves
Wojcicki has long been interested in taking 23andMe private, arguing that the company would perform better without the pressures of public markets. Since going public in 2021, 23andMe has struggled to find a sustainable business model. The company’s financial difficulties culminated in a series of resignations by independent board directors last September, who cited a “clear” difference of opinion with Wojcicki regarding the company’s future.
Despite these challenges, Wojcicki remained committed to acquiring 23andMe. After stepping down as CEO to position herself as an independent bidder, she has maintained her role on the board throughout the bankruptcy proceedings. Her efforts finally bore fruit with the recent court approval.
Privacy Concerns and Legal Challenges
As 23andMe navigated its financial troubles, privacy concerns regarding customer genetic data also came to the forefront. The company faced a significant data breach in 2023, raising questions about the security of its users’ personal information. At the time of the sale hearing, 23andMe had approximately 13 million customers, according to court documents.
In June, a lawsuit was filed by 27 states and the District of Columbia to prevent the sale of personal genetic data without customer consent. Although many objections were resolved, states like California, Kentucky, Tennessee, Texas, and Utah remain opposed to the sale. California Attorney General Rob Bonta’s office expressed disappointment with the court’s decision, citing non-compliance with state genetic privacy laws.
Commitment to Privacy and Future Prospects
In response to privacy concerns, 23andMe has affirmed its commitment to adhering to existing privacy policies and applicable laws. TTAM has pledged to honor these commitments, allowing users to delete their data and opt out of research. Customers will be notified at least two business days before the acquisition closes, with instructions on managing their data. Additionally, TTAM will provide two years of Experian identity theft monitoring at no cost.
Wojcicki emphasized the importance of choice and transparency regarding genetic data, stating, “Core to my beliefs is that individuals should be empowered to have choice and transparency with respect to their genetic data and have the opportunity to continue to learn about their ancestry and health risks as they wish.”
Looking Ahead
As Wojcicki prepares to retake control of 23andMe, questions remain about her potential return as CEO. Her leadership will be crucial in navigating the company’s future, particularly in addressing ongoing privacy concerns and restoring customer trust. The acquisition represents a significant opportunity for Wojcicki to realign 23andMe’s mission and operations in a rapidly evolving genetic testing industry.
The coming weeks will be critical as TTAM finalizes the acquisition and outlines its strategic vision for 23andMe. With a renewed focus on privacy and innovation, the company aims to rebuild its reputation and continue providing valuable insights into human genomics.
