Once worth $6 billion, 23andMe has lost 98% of its value and is on the verge of being delisted from the Nasdaq after all of its independent board members resigned in September. So what happened?
Founded in 2006, 23andMe set out to revolutionize the once very exclusive genetic testing business with a direct-to-consumer model. Thanks to capital from high-profile backers and celebrity endorsements, the company was able to market its test kits at affordable prices.
Unlike competitors like Ancestry.com, 23andMe sought to leverage its database for drug discovery. The company went public in 2021 and was valued around $3.5 billion. The funding allowed 23andMe to develop its drug research team and spearhead partnerships with pharmaceutical companies.
“We’re really at a point in time where I’m ready to explode,” 23andMe CEO Anne Wojcicki told CNBC in 2021. “There’s huge opportunities in therapeutics and huge opportunities in our consumer business.”
Shortly after debuting on the Nasdaq, rising interest rates made it more difficult …