A illustration of the 23andMe head workplace in Sunnyvale, California, on March 25, 2025.
Tayfun Coskun | Anadolu | Getty pictures
23andme Co-founder Linda Avey went to social media on Wednesday to specific frustration in regards to the destiny of the as soon as thriving genetic check firm that this week in Chapter 11 chapter safety in chapter safety was elevated.
Avey helped within the launch of 23andme in 2006 alongside Paul Cusenza and Anne Wojcicki, who resigned as CEO on Friday. The corporate turned mainstream due to its standard DNA check kits for residence, however has been struggling lately to generate recurring earnings, to face up possible therapeutic and analysis corporations and obtain privateness issues.
“My time on the firm was demolished in 2009, when my co-founder Anne satisfied the board that she ought to run the corporate,” wrote avey in a message on social media website X. “And I’ve to be trustworthy, I used to be pissed off by the route that the corporate took after that time.”
23andme, which achieved a peak market capitalization of round $ 6 billion, was price round $ 14 million on Wednesday.
“With out fixed shopper -oriented product improvement, and with out governance, 23andme misplaced its manner, and society missed an necessary alternative to advertise the concept of personalised well being,” wrote Avey.
Final March, the unbiased administrators of 23andMe shaped a particular committee to guage the potential paths of the corporate. All seven members resigned from the board in September and stated they didn’t agree with Wojcicki in regards to the ‘strategic route for the corporate’.
“After my departure, she archived a majority for herself that eradicated the board of the board, even whereas it was spreading in regards to the following financing rounds,” stated Avey. “For higher or worse, the goat stopped her. It was no shock when the board resigned final 12 months.”
Wojcicki submitted a number of proposals to take the corporate personal, however they had been all rejected even after the corporate had appointed new board members. The particular committee ” is unanimously decided to reject ‘Wojcicki’s most up-to-date proposal earlier this month.
If the chapter 11 plan of 23andMe is accepted by the courtroom, the corporate will “actively certified bids” throughout a 45-day course of. Wojcicki continues to be planning to pursue the corporate as an unbiased bidder, she stated on Monday in a publish on X.
“Many warning tales are buried within the 23andme story,” stated Avey. “Discovering a steadiness between the will for founder management and supervision of the board is crucial; in any other case, why have an indication in any respect?”
23andme didn’t instantly reply to CNBC’s request for feedback.
