DNA testing pioneer 23andMe filed for bankruptcy — sparking fresh concerns about safeguarding the personal data of the company’s more than 15 million customers.
The former Silicon Valley darling sought Chapter 11 protection on Sunday after struggling with weak demand for its ancestry testing kits that once featured in Oprah Winfrey’s annual list of favorite things, and following a 2023 data breach that damaged its reputation.
The company said it will continue to operate during the sale process, having secured $35 million in financing over the weekend.
Still, consumer advocates and privacy experts have raised significant concerns over the future of genetic data held by companies like 23andMe, the bankruptcy of which could lead to the sale or transfer of its extensive database.
Harvard Law School’s I. Glenn Cohen highlighted these concerns, emphasizing that users’ genetic information might end up “in the hands of somebody other than 23andMe, in a way that many people who have given their information to 23andMe never contemplated and might object to.”
“This might be a time to go in and delete that information in your account, even though it’s not a perfect solve,” he said.
He further expressed hope for better regulatory solutions.
“I would love to see a space where people can get the information they want without feeling as though that information might put them at risk,” Cohen said.
California Attorney General Rob Bonta had also urged customers of the distressed company to delete their data from 23andMe’s database before Sunday’s filing.
Here’s how customers can delete their data from 23andMe:
- Log into your 23andMe account on their website.
- Navigate to the “Settings” section of your profile.
- Scroll down to the section labeled “23andMe Data.”
- Click “View” next to “23andMe Data.”
- Before deletion, you can download your genetic data if you wish to retain a personal copy.
- Scroll to the “Delete Data” section and select “Permanently Delete Data.”
- You’ll receive a confirmation email; follow the link provided to confirm your deletion request.
Additionally, you can:
- Destroy stored samples:
Go to your account “Preferences” and change your storage options to destroy your saliva sample and DNA. - Withdraw research consent:
Navigate to “Research and Product Consents” in account settings to revoke permission for your data to be used in research.
Federal protections currently provide limited help to consumers who have given their genetic data to private companies like 23andMe.
The Health Insurance Portability Accountability Act (HIPAA), which safeguards medical data, does not extend to direct-to-consumer genetic testing companies.
While other laws such as the Genetic Information Nondiscrimination Act (GINA) do offer some protections against discrimination, comprehensive data privacy remains a substantial gap.
Bankruptcy law offers modest safeguards by involving oversight from federal courts and occasionally privacy ombudspersons, but these protections are limited.
Meanwhile, 23andMe co-founder and CEO Anne Wojcicki announced her resignation on X and revealed plans to become an independent bidder for the company she helped build.
Chief financial and accounting officer Joe Selsavage will step in as interim CEO during the transition.
Wojcicki, a Yale-trained biologist and former health care analyst, co-founded 23andMe in 2006 with the vision of giving individuals direct access to their genetic data.
Her leadership and visibility helped propel the startup to the forefront of consumer biotech, especially given her high-profile personal life — she was previously married to Google co-founder Sergey Brin and later dated former baseball star Alex Rodriguez.
Brin and Wojcicki separated in 2013 and finalized their divorce in 2015 after eight years of marriage.
The split became public around the time reports surfaced that Brin was involved in a romantic relationship with a Google employee, Amanda Rosenberg, who worked in the marketing department at now-defunct Google Glass.
Though neither Brin nor Wojcicki publicly confirmed the affair as the cause, media outlets widely linked it to the breakdown of their marriage.
Both Brin and Wojcicki have remained relatively private about the details and have maintained a cordial relationship, particularly for the sake of co-parenting their two children.
In 2022, Brin, who has a net worth valued by Bloomberg Billionaires Index at $140 billion as of Monday, filed for divorce from his second wife, Nicole Shanahan, who would go on to become a vice presidential candidate in the 2024 election while running alongside Robert F. Kennedy Jr.
Wojcicki dated former Yankees slugger A-Rod from early 2016 to early 2017. The pair reportedly split amicably, with sources suggesting that their differing lifestyles and social circles contributed to the breakup.
Last summer, Wojcicki’s older sister, Susan Wojcicki, the former YouTube CEO who was one of the first few employees to join Brin and co-founder Larry Page at Google when the search engine was a startup in the late 1990s, died after she was diagnosed with lung cancer. She was 56 years old.
With her scientific background and Silicon Valley connections, Anne Wojcicki played a crucial role in navigating both the scientific and regulatory hurdles of commercial genetic testing.
Her departure marks the end of an era for the company, though she made clear her commitment to 23andMe remains strong.
In her farewell post, Wojcicki acknowledged the company’s rocky road but expressed pride in its accomplishments.
“We have had many successes but I equally take accountability for the challenges we have today,” she said.
As the company seeks a new owner and fresh direction, it remains to be seen whether the next chapter of 23andMe will fulfill the bold vision that once made it a biotech darling.
“There is no doubt that the challenges faced by 23andMe through an evolving business model have been real, but my belief in the company and its future is unwavering,” she wrote.
The company is best known for its direct-to-consumer DNA testing kits, which allow customers to analyze their ancestry and health risks using a simple saliva sample.
Once valued at $6 billion in the months following its initial public offering in 2020, 23andMe’s market capitalization has plummeted to just $50 million.
At its peak, 23andMe’s stock was trading at around $320 a share in early 2021. As of Monday, the share price was hovering below $1.
In recent years, the firm has faced mounting pressure from investors and regulators, as well as legal troubles stemming from a massive data breach in 2023 that compromised the personal information of nearly 7 million users.
This past September, the company agreed to pay $30 million to settle a lawsuit linked to the data breach.
In November, the company slashed 40% of its workforce in a bid to cut costs.
Mark Jensen, chair and member of the Special Committee of the Board of Directors, said the decision to pursue a court-supervised sale followed a “thorough evaluation of strategic alternatives.”
“We expect the court-supervised process will advance our efforts to address the operational and financial challenges we face, including further cost reductions and the resolution of legal and leasehold liabilities,” he said.
