23andMe CEO Anne Wojcicki Faces Board Resignations Amid Strategic Disagreements

Anne Wojcicki, the CEO of 23andMe, is navigating a challenging phase as the company faces the resignation of all seven board members amid strategic disagreements. The company, known for its mail-order DNA testing kits, has struggled to achieve profitability since its merger with a special purpose acquisition company (SPAC) in 2021. This financial instability has resulted in a plummeting stock value, which hit a low of $0.30 before rebounding slightly to $0.36.

The board members included representatives from Sequoia Capital, with Roelof Botha and Neal Mohan among them. They expressed their concerns in a letter addressed to Wojcicki, highlighting the absence of a feasible proposal that aligned with the interests of non-affiliated shareholders. Despite supporting the company’s mission, they cited strategic differences with Wojcicki, who controls 49% of the company’s voting rights, as a reason for their departure.

In response, Wojcicki expressed her surprise and disappointment at the mass resignation but maintained optimism about the company’s future. She is considering taking the company private, believing it is the best course of action. Wojcicki is now actively seeking new independent directors who align with her vision and plans to provide further updates soon.

This year has proven challenging for 23andMe, as evidenced by its efforts to generate revenue through the sale of drugs like Ozempic and Wegovy via its telehealth subsidiary, Lemonaid Health. Additionally, the company has faced setbacks including a data breach affecting nearly 7 million customers, which has resulted in a slew of lawsuits. From its former valuation of $3.5 billion, the company’s market capitalization has sharply declined.

Despite these hurdles, Wojcicki remains confident that 23andMe’s focus on drug development and genetic sequencing will eventually yield success. She reiterated her commitment to the company’s vision, though acknowledging the challenges encountered on the path forward.