23andMe Files for Bankruptcy Amidst Data Breach and Leadership Changes

23andMe, a pioneer in consumer genetic testing, has filed for Chapter 11 bankruptcy as it seeks to facilitate its sale amid ongoing financial turmoil and a significant data breach affecting millions of users. Co-founder and CEO Anne Wojcicki has resigned after several failed attempts to secure a buyout, including a recent offer that drastically undervalued the company. The firm, which once boasted a valuation of $3.5 billion in 2021, has seen its market cap plummet to approximately $50 million, with its latest bid valuing it at just $11 million. Following a major workforce reduction and halted therapeutic development, 23andMe has secured $35 million in debtor-in-possession financing to continue operations during the bankruptcy process. The company's decline underscores the challenges faced by tech innovators in navigating regulatory and data security landscapes, serving as a cautionary tale for the burgeoning digital health sector. Investors are now reassessing the viability of the genetic testing market in light of these developments.