A banner at 23andMe headquarters in Sunnyvale, California, US, on Wednesday, January 27, 2021.
David Paul Morris | Bloomberg | Getty Images
23andMe CEO Anne Wojcicki is considering a proposal to take the genetic testing company private after its stock price fell more than 95% from its 2021 highs.
Wojcicki is working with advisors and plans to start talking to potential funding sources and partners, according to a filing with the U.S. Securities and Exchange Commission late Wednesday. The filing said it “wishes to maintain control” of the company and would not be “willing to support any alternative deal.”
The former billionaire co-founded 23andMe in 2006, and the company shot to the mainstream due to its at-home DNA testing kits that give customers insight into their family history and genetic profiles. 23andMe went public in 2021 through a merger with a special purpose acquisition company, which valued the company at about $3.5 billion.
But despite launching two new companies, 23andMe has struggled to generate consistent recurring revenue since consumers only need to take a DNA test once to get their results. The stock is trading at about 45 cents per share Thursday morning.
In November, 23andMe received a deficiency letter from the Nasdaq Listing Qualifications Department, giving it 180 days to get its stock price back above $1. The company's board of directors formed a “special committee” in late March to help explore options that could boost the stock.
The committee said it was aware of Wojcicki's interest in acquiring all of 23andMe's outstanding shares, according to a statement issued Thursday. It currently owns shares constituting more than 20% of the outstanding shares, which equates to about 49% of the voting power, the statement said.
“The Special Committee will carefully review Ms. Wojcicki’s proposal when and if it is provided and evaluate it in light of other available strategic alternatives, including continuing to operate as a publicly traded company,” the committee said in the statement. “The Special Committee is committed to acting in the best interests of 23andMe and its shareholders.”
The committee hired Wells Fargo as its financial advisor, and said there was “no guarantee” that Wojcicki's bid would lead to the proposed outcome.
23andMe declined to comment beyond the release.
