In a significant development for the genetic-testing company 23andMe, all seven of its independent directors have resigned from the board this week.
The mass resignation follows ongoing disagreements with CEO and co-founder Anne Wojcicki, who has been pursuing efforts to take the company private.
The departing board members cited a “distracting difference of view” with Wojcicki, particularly over her proposed strategy to take the company out of the public markets. In a letter to Wojcicki, the directors explained that despite months of negotiations, they had yet to receive a “fully financed, fully diligenced, actionable proposal” that would be in the best interest of the company’s non-affiliated shareholders. The directors’ resignation was effective immediately, leaving Wojcicki as the sole remaining board member.
Wojcicki, who holds 49% of the voting power in 23andMe, responded with a memo to employees expressing her surprise and disappointment at the board’s decision. She reiterated her belief that taking the company private would be in its long-term best interest, free from the short-term pressures of the public market. She also announced that efforts to recruit new independent directors would begin immediately.
23andMe, which went public in 2021, has faced financial struggles, reporting a net loss of $667 million in its last fiscal year. The company’s stock has plummeted by more than 97% since its stock market debut, closing at just 33 cents on Thursday.
Wojcicki first announced her intention to acquire all outstanding shares and take the company private in April. However, the board rejected her initial proposal in August, citing concerns over a lack of financing and the offer’s failure to provide a premium to the company’s stock price.
In addition to internal leadership challenges, 23andMe has also faced external scrutiny. The company recently agreed to a $30 million settlement in response to a class-action lawsuit over a 2023 data breach that exposed customer information. Despite these issues, Wojcicki remains committed to the company’s mission of transforming healthcare through genetic information.
The Associated Press and Business Insider contributed to this report.
