‘Barron’s Roundtable’ panelists talk about the newest headlines round 23andMe and share prime inventory picks.
Genetic testing firm 23andMe filed for Chapter 11 chapter safety to assist the $50 million firm promote itself, the corporate introduced Sunday.
23andMe’s saliva-based kits have been serving to prospects study their ancestry since 2006, and the corporate mentioned it’s going to proceed working whereas the chapter court docket facilitates the sale course of.
California Legal professional Common Rob Bonta issued a “consumer alert” concerning the “trove of sensitive consumer data 23andMe has amassed,” reminding Californians that they’ve the fitting to direct the corporate to delete their genetic information, destroy their check samples and revoke permission for genetic information for use for analysis.
“There are no changes to the way the Company stores, manages, or protects customer data,” 23andMe mentioned in a media launch.
THIS IS WHAT NO ONE PLANNED COULD HAPPEN AFTER TAKING A DNA TEST
An organization consultant reveals off what’s in a DNA equipment on the 23andMe sales space on the RootsTech annual genealogical occasion in Salt Lake Metropolis, Utah, U.S., February 28, 2019. (George Frey / Reuters)
The corporate has skilled tumult in recent times. Final November, 23andMe mentioned that it was reducing its headcount by 40%, or greater than 200 staff.
Co-founder and CEO Anne Wojcicki has resigned after a number of failed takeover bids, Reuters reviews, however she mentioned on X that she did it “so I can be in the best position to pursue the company as an independent bidder.”
23ANDME CUTS 40% OF ITS WORKFORCE
Attendees buy DNA kits on the 23andMe sales space on the RootsTech annual genealogical occasion in Salt Lake Metropolis, Utah, on Feb. 28, 2019. (George Frey / Reuters)
Wojcicki will likely be changed by CFO Joe Selsavage on an interim foundation.
23andMe mentioned it secured a debtor-in-possession (DIP) financing dedication for about $35 million and expects to proceed working through the sale course of. It didn’t say if it had some other buyout curiosity or provides.
Ticker Safety Final Change Change % ME 23ANDME HOLDING CO 1.79 +0.03
+1.70%
It listed each property and estimated liabilities of $100 million to $500 million.
A month earlier than its restructuring, 23andMe agreed to pay $30 million and provides three years of safety monitoring to settle a lawsuit accusing it of failing to guard the privateness of 6.9 million prospects whose private info was uncovered in a knowledge breach in 2023.
An attendee interacts with a show on the 23andMe sales space on the RootsTech annual genealogical occasion in Salt Lake Metropolis, Utah, on Feb. 28, 2019. (George Frey / Reuters)
“We want to thank our employees for their dedication to 23andMe’s mission,” Mark Jensen, Chair and member of the Particular Committee of the Board of Administrators, mentioned in a press release. “We are committed to supporting them as we move through the process.”
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“In addition, we are committed to continuing to safeguard customer data and being transparent about the management of user data going forward, and data privacy will be an important consideration in any potential transaction,” he mentioned.
FOX Enterprise’ Aislinn Murphy and Reuters contributed to this report.
