Millions of people will have their DNA data put up for sale after major at-home testing company 23andMe filed for bankruptcy.
The company, which has tested more than 15m people’s genetic makeup using post-in saliva kits, including more than 250,000 in the UK, announced that it had entered US bankruptcy protection in an attempt to sell the company.
It said that data privacy would be an “important consideration” but added that it was seeking to “maximise the value of its assets”.
Privacy advocates have urged consumers to delete their 23andMe data as the company’s share price crash has raised concerns that the data could be sold off to data brokers or to target adverts.
On Friday, Rob Bonta, California’s attorney general, said customers should consider deleting their profiles.
Announcing that it had filed for bankruptcy protection, 23andMe said: “There are no changes to the way the company stores, manages or protects customer data.”
23andMe, which rode a DNA testing boom to reach a valuation of $6bn (£4.6bn) in 2021, has seen its value collapse to just $48m. Revenues have slumped as the tests, which show ancestral origins and genetic health risks, fall out of fashion.
It lost $667m in the year to March 2024, and had just $127m in cash at the end of September.
23andMe’s board said it had rejected a third takeover bid from Anne Wojcicki, the company’s chief executive and founder. The offer valued the company at $2.94 a share, or roughly $78m, but was dependent on the company hitting certain revenue targets.
Ms Wojcicki said she had resigned as chief executive and intended to bid for the company as part of the sale process.
Mark Jensen, the company’s chairman, said: “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.”
The company said: “Any buyer will be required to comply with applicable law with respect to the treatment of customer data.”
23andMe has already been accused of putting customer data at risk after hackers accessed 7m users’ data last year and leaked the names of people with Chinese or Ashkenazi Jewish heritage.
In September last year it agreed to pay $30m to settle a class-action lawsuit related to the breach. The company has secured $35m in financing to keep operating.
23andMe has a research agreement with GSK that seeks to use the data to invent new types of drugs. The pharmaceutical company has an option to extend the deal later this year.
