The Dramatic Rise and Fall of 23andMe: Insights from Four Informative Charts | CNN

Genetic testing company 23andMe recently announced its filing for Chapter 11 bankruptcy protection. This move aims to help the company restructure its debts while continuing operations. Founded in 2006, 23andMe has faced significant challenges, especially since going public in 2021. With over 15 million customers globally, many are concerned about their data privacy and are being urged by consumer advocates to delete their information.

Recently, 23andMe’s journey has been full of ups and downs. In June 2021, just after its debut on the Nasdaq, the company had a peak valuation of $5.8 billion. However, it quickly lost nearly half that value by the end of the year. In 2023, the company faced a severe data breach, leaving millions vulnerable. As of now, shares are worth less than a dollar, highlighting the company’s rough road ahead.

One major hurdle for 23andMe has been finding a solid business model. It primarily sells saliva testing kits that range from $99 to $499. Most earnings come from these one-time sales, limiting potential growth. While the customer base grew over the years, new subscriptions have faltered, leading to increasing losses. Last year alone, the company reported a staggering $666 million loss and cut its workforce by 40%.

To address some of these financial issues, 23andMe partnered with pharmaceutical giant GSK in 2018 for a four-year collaboration. GSK invested $300 million to leverage genetic insights for drug development, but the financial struggles have persisted.

Moreover, 23andMe’s testing offers insights not just into ancestry but also health risks, such as predispositions to diabetes and certain cancers. While this data can empower informed health decisions, it raises critical privacy concerns, especially in light of the company’s recent struggles and potential sale.

Recent developments show a surge in consumer concern. Following the bankruptcy announcement, California Attorney General Rob Bonta noted that he faced difficulties erasing his data from the platform, reflecting widespread user frustration. Web analytics indicated a significant spike in visits to 23andMe’s help pages for data deletion—376,000 on the day of the announcement and 480,000 the next day.

This is a critical moment for 23andMe as the future remains uncertain. Consumer advocates are closely watching the situation, pushing for transparency and customer data protections amid the upheaval. For those interested in the implications of genetic data and privacy, staying informed is essential.

For more insights about the privacy concerns surrounding genetic testing, you can refer to trusted sources like the Centers for Disease Control and Consumer Reports.

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