Every board member just resigned from DNA tester 23andMe

The move is almost certainly the final nail in the coffin for the disruptive company known for its mail-order DNA-testing kits. Since going public in 2021 through a merger with a special purpose acquisition company (SPAC), 23andMe has never turned a profit. It was priced at $10 on the day of the IPO; So far in 2024, it has yet to reach a $1 valuation. After the resignation of all its independent directors on Tuesday, the stock fell to its rock bottom: $0.30 (As of midday Wednesday, it was back to $0.36.)

The board includes Sequoia Capital's Roelof Botha and Neil Mohan, who took over as YouTube CEO last year after Anne's late sister Susan Wojcicki stepped down.

“After months of work, we have yet to receive from you a fully funded, fully executed, workable proposal that is in the best interest of non-affiliated shareholders,” Botha, Mohan et al wrote in a letter addressed to Wojcicki. “While we continue to wholeheartedly support the company's mission and believe deeply in the value of the personal health and wellness you offer, it is also clear that we differ on the strategic direction of the company moving forward.”

Because of this difference—and the fact that Wojcicki controls 49% of the 23andMe vote—they resigned. Wojcicki is now the sole board member.

In an internal memo released shortly after Jan's resignation, Wojcicki said he was “surprised and disappointed” by the decision. But despite the pressure, he is bullish on taking the company private, saying it is “the best plan for the company yet”. He is now “immediately” seeking new independent directors who support that plan and said more updates would follow Thursday.

The company has been flailing this year. Last month, in a recent bid for cash, it began writing prescriptions for GLP-1 weight loss drugs like Ozempic and Wegovy through its telehealth subsidiary, Lemonaid Health.

It is not enough. Sales of DNA tests have ceased, a research collaboration with GlaxoSmithKline ended last year, and a recent data breach affected nearly 7 million customers, resulting in a flurry of lawsuits and a $30 million settlement. Once valued at $3.5 billion, 23andMe's market cap has now dipped below $200 million.

Still, the drug development and genetic sequencing that the firm punched above its weight will eventually pay off, Wojcicki said. CNN In February “the vision and where we're going is solid, but the road to get there is more turbulent.” Unfortunately, the board is no longer willing to have the course.