WSJ explains what went wrong with Wojcicki’s biotech business bringing DNA testing company 23andMe from a $6B valuation to Penny stock.
23andMe, spearheaded by founder Anne Wojcicki, initially sought to democratize healthcare through at-home genetic testing kits. Despite early promise, challenges in its business model and persistent privacy concerns have led to a drastic decline in valuation, nearly to zero. Once valued at $6 billion, after 3 years, the company faces delisting threats from Nasdaq.
Founded in 2006 by Linda Avey and Anne Wojcicki, 23andMe provided consumers access to genetic information. Avey, an expert in genetics, and Wojcicki, with a healthcare investment background and Silicon Valley connections, brought unique expertise to the venture.
Initially, the company gained significant attention and funding. Going public in 2021, it reached a valuation exceeding $6 billion. While initially focusing on ancestry, it transitioned to healthcare around 2018, offering personalized health reports and lifestyle advice through a subscription service. Additionally, it ventured into drug development and forged a partnership with pharmaceutical giant GSK leveraging its extensive database for research.
Despite high expectations, neither the subscription service nor drug development yielded significant returns. Consequently, 23andMe faced financial strain, reflected in its stock price plummeting below $1 in September 2023.
In an Interview on Feb 2024 with Wired, Anne Wojcicki explain why she is optimistic about the future.