Anne Wojcicki, co-founder and CEO of 23andMe Holding Co. has reiterated her commitment to taking the genetic testing company private following the resignation of its independent board members. In a memo to employees, Wojcicki expressed her belief that removing 23andMe from the pressures of public markets would offer the best path for achieving the company’s long-term goals. She emphasized that going private would provide the company with the flexibility needed to fulfill its mission.
Wojcicki also announced plans to begin the search for independent directors to join the board, of which she is now the sole remaining member while serving as both CEO and chair. Her remarks come after the resignation of the board’s seven independent members, including prominent Sequoia Capital partner Roelof Botha, who has served on numerous boards such as Block Inc. and Unity Software Inc.
In July, Wojcicki proposed taking the company private at a price of 40 cents per share. However, a special committee formed by the board to evaluate deals indicated in August that it was not ready to proceed with the offer. The committee expressed disappointment, noting that the proposal lacked a premium over the current share price and was not accompanied by necessary financing commitments.
In a letter to Wojcicki, the independent directors stated that, despite several months of work, they had not received a fully financed and actionable proposal that would benefit non-affiliated shareholders. They expressed concern about the lack of notable progress, leading them to believe a viable offer was not forthcoming. The board members’ resignations took effect immediately.
A representative for the former board members declined to comment on Wojcicki’s internal memo.
The company’s stock has dropped 63% this year, closing at 34 cents per share on Tuesday, which gives 23andMe a market value of $173 million. The company, which went public in 2021 via a special purpose acquisition company (SPAC) merger led by billionaire Richard Branson, was valued at $3.5 billion at the time of its listing.
Since then, sales of 23andMe’s DNA testing kits have slowed, prompting the company to pivot toward offering subscription products. However, the subscription model has yet to generate the level of customer engagement that the company initially expected.
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