Written by Hanafi Satiga, Anousha Shah and Surbi Maysara
(Reuters) -23andme on Sunday submitted bankruptcy in the United States after struggling with the weak demand for its predecessors testing groups and violating the 2023 data that harmed its reputation.
The shares of the company fell 50 % to 88 cents in trading on Monday after the co -founder Ann Wajiki, who made many failed acquisitions, resigned as CEO. 23andme did not say if there were other interested offers. She will continue to work during the sale, as she got $ 35 million in financing during the weekend.
Officials, including California Public Prosecutor Rob Punta, asked about what would happen to the genetic data collected by 23andme, although the company's privacy policies say the data can be sold to other companies. The company said that the bankruptcy process will not affect how to store, manage or protect customer data.
23ndme received a lot of attention from investors when it was first offered through a special purposes (SPAC) managed by billionaire Richard Branson at $ 3.5 billion in 2021. Its market value reached its climax later in that year at about 6 billion dollars due to the increasing benefits in DNA testing groups but the demand has been paid 23 years ago.
Consumer groups sales are often chosen during the holiday season, but 23andme struggled to maintain customers mainly because people will use groups once and see a significant reason for another request. Bernstein analysts said that the asset testing sets market may be close to exploitation.
In 2023, infiltrators revealed the personal data of approximately 7 million customers 23andme over a period of five months, dealt with a major blow to the company's reputation and double the growth problems. A stimulant breach between customers interested in their privacy and how DNA test companies deal with their data.
23ANDME eventually agreed late last year a $ 30 million settlement in a violation lawsuit.
The San Francisco -based company has also registered 200 employees and stopped developing all treatments as part of what would be a major repair.
WoJCICKI has been pressing for acquisition since last April, but was rejected by the 23andme board of directors. According to what was reported, their contacts were used, including the former husband and the founder of Google Sergey Brain, to help pay the initial investments. It will be replaced by the financial director, Joe Silsavag, on a temporary basis.
WoJCICKI, on Monday's Publication on Monday, said it intends to make another offer, without providing details. Its 41 cents per cents per share of 23ndme is about $ 11 million.
On Sunday, the company included assets and opponents of between $ 100 million and 500 million dollars.
What happens to customer data?
23ndme said that any buyer will ask the buyer to comply with the applicable law on how to treat customer data. The company has conducted at least 30 transactions with pharmaceutical companies and biotechnology such as British pharmaceutical maker GSK, allowing its database. Most of its agreements are still not announced.
Anya Al -Amir, a law professor at Iowa University, said: “How is the data used is in fact the privacy policy used by anyone who used 23andme and then accepts it.
On Friday, Punta in California urged customers to delete their genetic data, noting the financial hardship of 23andme financial. Social media publications have developed how users can delete their data. The prince said that deleting a person's account can help reduce future risks, although it does not guarantee the removal of everything.
The prince added: “Once these data are present, even if you ask to delete your account, they cannot find your information because he no longer has your name. So for most people who may be fine as long as their names are not connected.”
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