Less than three months after Regeneron said he would acquire 23andme’s assets for $256 million, Anne Wojcicki has regained control of the troubled DNA testing company she co-founded.
On Friday, Wojcicki’s new nonprofit, TTAM Research Institute, announced it would acquire almost all of 23andMe’s assets in a $305 million deal, topped it with Regeneron’s previous bid and reverted the company. The sale includes 23andMe’s core gene testing business, its research services, and its telehealth arm, Lemonaid Health.
“23andMe Holding Co. (“23andMe” or the “Company”) (OTC: MEHCQ), a leading human genetics and biotechnology company, today announced that it has entered into a definitive agreement with TTAM Research Institute (“TTAM”), a nonprofit public benefit corporation based in California and led by 23andMe Co-Founder and former CEO Anne Wojcicki, for the sale of substantially all The company’s assets, including the business line of personal genome services (PGS) and research services, LemonAid Health Business, are at a purchase price of $305 million,” the company said in a news release.
“TTAM will acquire significant all of 23andMe’s assets for $305 million, including LemonAid Health, a subsidiary of TeleHealth, a business line of personal genomic and research services,” CNBC reported.
This is a perfect moment for Wojcicki, who resigned as CEO when he filed for Chapter 11 bankruptcy protection in March. She quickly formed a TTAM, pushed her to resume auctions, filed a higher offer, and ultimately won. According to the Wall Street Journal, TTAM represents 23andMe’s first letter.
“We are excited to continue the 23andMe mission and help people access, understand and benefit from the human genome,” Wojcicki said in a statement.
Once a Silicon Valley success story, 23Andme made waves with a home DNA test kit that promises to reveal details and genetic characteristics of its ancestors. It was released in 2021 via SPAC merger and reached a peak valuation of around $6 billion. But that didn’t last.
The company struggled to repeatedly generate revenue. Its business model has leaned heavily towards one-off test kits, making it difficult to constantly grow customer acquisition. Attempts to pivot into subscriptions, drug development and research partnerships have remained flat. And by 2023, things had only gotten worse.
That year, hackers violated data from around 7 million customers. The fear of privacy has already been a concern for genetic data companies and has rekindled. The California Attorney General recently warned residents to fully consider deleting DNA data from the platform.
The fall of 23andme was not unexpected. A year ago we wrote “23andme’s Rise and Descend” and recorded how the company’s stocks fell from $17.65 to penny share territory. Today, the market capitalization is worth around $25 million, down about 96% from its high.
The company filed for bankruptcy with estimated assets and liabilities ranging from $100 million to $500 million, respectively. A special committee was formed in March to explore the next step. Wojcicki made several proposals to make the company private, all of which have been rejected up to now.
It is still unclear whether this deal will be able to regain 23andme from the brink. Wojcicki says she is working on transparency and to give users more control over her genetic data. It may be enough to rebuild trust, but it takes more than good will to bring back your business.
23Andme was founded in 2006 by Linda Avey, Paul Cusenza, and Anne Wojcicki. They pioneered direct consumer genetic testing to consumers, allowing everyday people to access health and ancestral data without passing through doctors. But it exposed by relying on selling one-off kits and unable to build a permanent revenue stream. The company’s bets on long-term research and treatments never paid off.
Now, TTAM intervened and 23andme got another shot. At this point, it’s under the same founder who built it in the first place.
The agreement is pending approval from the US Bankruptcy Court for the Eastern District of Missouri.
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