Business Overview - 23andMe operates with two business verticals: Consumer and Research[11] - The Consumer business focuses on personalized health services, ancestry, and recurring subscription revenue[13] - The Research business leverages the world's largest re-contactable genetic and phenotypic data engine for data licensing, target discovery, and research services for pharma[15] - The company has genotyped over 15 million customers, with over 84% of customers opting-in to research, generating 4.8 billion phenotypic data points[17] Consumer Health - Genetics plays a role in 8 out of the 10 leading causes of death in the US[24] - 23andMe helps consumers identify their genetic risks, with over 28,000 customers identified with BRCA1/BRCA2 variants and over 4 million with a higher likelihood of type 2 diabetes[32] - 76% of customers report taking a positive health action after learning about their genetics[33] - 23andMe offers direct access to care with Lemonaid Health Telehealth Services, including access to GLP-1 drugs for weight loss in a number of states[43, 47] Research and AI - 23andMe has a large biobank with over 9 million research participants with ILD data sharing consent and over 5 million biobanked samples[65] - The company is pursuing multiple approaches to integrate Claims and EHR data into its existing data ecosystem, with over 5 million 23andMe customers having both Claims and EHR data[67, 71] - 23andMe is investing in AI to drive the next wave of insights and value-creation, leveraging its large-scale, relevant, and unique data[93] Financials - In FY2024, PGS revenue was $168 million with subscription revenue of $20 million[57] - For the three months ended December 31, 2024, Consumer Services revenue was $40 million (66% of total revenue) and Research Services revenue was $21 million (34% of total revenue)[104] - Total revenue for the three months ended December 31, 2024, was $60 million, compared to $45 million for the same period in FY2024[104] - Total revenue for FY2024 was $220 million, with Consumer Services accounting for $202 million (92%) and Research Services accounting for $17 million (8%)[104] - The company has $216 million in cash to support its plans for targeted investment in high ROI growth initiatives[103]

Part I [Business](index=5&type=section&id=Item%201.%20Business) The company operates direct-to-consumer genetic testing and telehealth, undergoing Chapter 11 bankruptcy and asset sale - On March 23, 2025, the company filed for **Chapter 11 bankruptcy protection** and is operating as a 'debtor-in-possession'[22](index=22&type=chunk) - The company has entered into an Asset Purchase Agreement to sell substantially all of its assets for **$256.0 million**, with a competing bid of **$305.0 million** later submitted[25](index=25&type=chunk)[26](index=26&type=chunk) - In November 2024, the company discontinued its **Therapeutics operating segment** and implemented a significant reduction in force to reduce operating costs[21](index=21&type=chunk) PGS Customer and Membership Metrics | Metric | As of March 31, 2025 | As of March 31, 2024 | Change | | :--- | :--- | :--- | :--- | | PGS Customers | ~14.4 million | ~15.1 million | ~5% decrease | | 23andMe+ Members | ~564,000 | ~562,000 | ~0.4% increase | Revenue Contribution by Source (Fiscal Years) | Revenue Source | FY 2025 | FY 2024 | FY 2023 | | :--- | :--- | :--- | :--- | | PGS Revenue | ~74% | ~76% | ~68% | | Membership Revenue | ~19% | ~9% | N/A | [Products and Services](index=7&type=section&id=Item%201.%20Business%23Products%20and%20Services) The company offers Personal Genome Service (PGS), telehealth via Lemonaid Health, and research services leveraging its genetic database - PGS services are the main source of revenue, accounting for approximately **74% of total revenue** in fiscal 2025[36](index=36&type=chunk) - The 23andMe+ Premium membership service grew to represent approximately **19% of total revenue** in fiscal 2025, up from **9% in fiscal 2024**[34](index=34&type=chunk) - The **Lemonaid telehealth platform** offers online medical care and pharmacy fulfillment, operating through affiliated Professional Medical Corporations (PMCs)[39](index=39&type=chunk)[40](index=40&type=chunk) - The company entered a new **non-exclusive data license agreement with GSK** in October 2023, following the expiration of an exclusive agreement in July 2023[42](index=42&type=chunk) [Business Strategy](index=9&type=section&id=Item%201.%20Business%23Business%20Strategy) The strategy focuses on empowering customers and scaling research, despite declining PGS customers due to bankruptcy and cyber incidents - The number of PGS customers decreased by approximately **5%** from **15.1 million** at the end of fiscal 2024 to **14.4 million** at the end of fiscal 2025, further declining to **14.0 million** by May 31, 2025[46](index=46&type=chunk) - The 23andMe+ membership base was approximately **527,000** as of May 31, 2025, down from **564,000** at the end of fiscal 2025[51](index=51&type=chunk) - A core strategic pillar is **scaling the research platform**, leveraging a vast database to identify genetic pathways and disease risk predictors[49](index=49&type=chunk) [Competition](index=11&type=section&id=Item%201.%20Business%23Competition) The company faces intense competition in consumer genetics, telehealth, and research services, including emerging AI-driven solutions - The company is the only direct-to-consumer genetic testing company with **eight FDA authorizations and clearances**, viewed as a key competitive advantage[57](index=57&type=chunk) - There is **increasing competition in telehealth** from new entrants and traditional healthcare providers expanding into virtual care[58](index=58&type=chunk) - The company could face future competition from entities using **AI and large language models (LLMs)** for consumer product development and research services[59](index=59&type=chunk)[61](index=61&type=chunk) [Government Regulation](index=13&type=section&id=Item%201.%20Business%23Government%20Regulation) The company is heavily regulated, with FDA oversight on genetic reports, CLIA compliance for labs, state laws for telehealth, and global data privacy regulations - The company's genetic health, carrier status, and pharmacogenetic reports are **regulated by the FDA as medical devices**, with multiple De Novo authorizations and 510(k) clearances obtained[73](index=73&type=chunk)[80](index=80&type=chunk) - A recent court ruling on March 31, 2025, stated the **FDA lacks authority to regulate laboratory-developed tests (LDTs)**, suspending the FDA's LDT Final Rule[77](index=77&type=chunk) - The telehealth business operates through affiliated **Professional Medical Corporations (PMCs)** to comply with state laws prohibiting the corporate practice of medicine[95](index=95&type=chunk)[96](index=96&type=chunk) - The company is subject to numerous data protection laws, such as **CCPA and GDPR**, which regulate personal and genetic information and impose significant fines for non-compliance[100](index=100&type=chunk)[104](index=104&type=chunk) [Risk Factors](index=21&type=section&id=Item%201A.%20Risk%20Factors) The company faces substantial risks from bankruptcy, declining market, cyber incidents, intense competition, regulatory burdens, and significant financial losses - The **Chapter 11 bankruptcy proceedings** pose significant risks, including the potential for the company's **common stock to become worthless**, delisting from Nasdaq, and high administrative costs[122](index=122&type=chunk)[124](index=124&type=chunk)[128](index=128&type=chunk) - A **criminal cyber incident in October 2023** led to unauthorized user data access, resulting in class action lawsuits and government inquiries[206](index=206&type=chunk)[207](index=207&type=chunk)[208](index=208&type=chunk) - The company has a history of significant losses, with a net loss of **$280.9 million** in fiscal 2025 and an accumulated deficit of **$2.5 billion**, raising **substantial doubt about its ability to continue as a going concern**[301](index=301&type=chunk)[306](index=306&type=chunk) - The **market for personal genetics products has seen a recent decline**, leading to decreased revenues, particularly in PGS revenue[148](index=148&type=chunk)[149](index=149&type=chunk) - The company relies on **sole suppliers** for critical components like saliva collection kits and on a single laboratory for processing, creating significant supply chain risk[160](index=160&type=chunk) [Unresolved Staff Comments](index=55&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company reports no unresolved staff comments from the SEC - None[318](index=318&type=chunk) [Cybersecurity](index=55&type=section&id=Item%201C.%20Cybersecurity) The company's cybersecurity program, led by a CSO and overseen by the audit committee, was enhanced after a 2023 cyber incident - The cybersecurity program is managed by a **Chief Security Officer (CSO)** and overseen by the board's audit committee, which receives regular updates[321](index=321&type=chunk)[325](index=325&type=chunk) - In response to the October 2023 Cyber Incident, the company implemented enhanced security measures, including **mandatory two-step verification** for all customers and resetting passwords[324](index=324&type=chunk) - The company maintains annual certifications for compliance with **ISO/IEC 27001**, **ISO/IEC 27701**, and **ISO/IEC 27018** standards[321](index=321&type=chunk) [Properties](index=56&type=section&id=Item%202.%20Properties) The company abandoned its South San Francisco and Sunnyvale facilities due to restructuring and bankruptcy, retaining its San Francisco headquarters and St. Louis operations - The company **abandoned its South San Francisco lab facility** in December 2024 and its **Sunnyvale facility** in March 2025 as part of its restructuring and bankruptcy[329](index=329&type=chunk) - The **leases for the abandoned facilities are being rejected** through the Chapter 11 process[329](index=329&type=chunk) [Legal Proceedings](index=57&type=section&id=Item%203.%20Legal%20Proceedings) The company is in Chapter 11 bankruptcy, which has stayed substantially all other legal proceedings against it - **Substantially all legal proceedings** against the company have been stayed due to the Chapter 11 Cases[333](index=333&type=chunk) [Mine Safety Disclosures](index=57&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not Applicable[334](index=334&type=chunk) Part II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=57&type=section&id=Item%205.%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) The company's Class A common stock was delisted from Nasdaq post-Chapter 11 and now trades on the OTC Pink Market, with no dividends paid - The company's Class A common stock was **delisted from Nasdaq** and now trades on the **OTC Pink Market** under the symbol 'MEHCQ' as of March 31, 2025[335](index=335&type=chunk) - The company has **not paid any cash dividends** and does not plan to in the foreseeable future[338](index=338&type=chunk) Stock Performance Comparison (June 17, 2021 - March 31, 2025) | Index | Initial Investment ($100) | Value at 3/31/2025 | | :--- | :--- | :--- | | 23andMe Holding Co. | $100.00 | $0.28 | | S&P 500 Health Care Sector | $100.00 | $117.00 | | S&P 500 Index | $100.00 | $132.92 | | Russell 2000 Index | $100.00 | $87.95 | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=58&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) The company's financial condition deteriorated, leading to Chapter 11 bankruptcy, a 14% revenue decrease in FY2025, and a major restructuring - The company has **substantial doubt about its ability to continue as a going concern** due to significant operating losses, its Chapter 11 filing, and an accumulated deficit of **$2.5 billion** as of March 31, 2025[306](index=306&type=chunk)[396](index=396&type=chunk) - The company secured a **Debtor-in-Possession (DIP) credit facility**, initially for **$35.0 million** and later increased to **$60.0 million**, to fund operations during the bankruptcy[360](index=360&type=chunk)[363](index=363&type=chunk) - The **Therapeutics operating segment was discontinued** in November 2024 as part of a major restructuring that included a **40% workforce reduction**[350](index=350&type=chunk)[373](index=373&type=chunk)[374](index=374&type=chunk) Fiscal 2025 vs. 2024 Financial Highlights (Continuing Operations) | Metric | FY 2025 | FY 2024 | % Change | | :--- | :--- | :--- | :--- | | Total Revenue | $189.9M | $219.6M | (14%) | | Gross Profit | $100.0M | $97.9M | 2% | | Gross Margin | 52% | 45% | +7 p.p. | | Loss from Operations | ($240.6M) | ($581.7M) | (59%) | | Net Loss from Continuing Ops | ($235.2M) | ($566.9M) | (59%) | [Results of Operations](index=70&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations%23Results%20of%20Operations) FY2025 revenue from continuing operations decreased 14% to $189.9 million, while net loss narrowed to $235.2 million due to lower operating expenses - FY2025 revenue decreased by **14% YoY**, driven by lower PGS kit sales, partially offset by a **$16.7 million** increase in membership revenue and a **$19.3 million** non-recurring revenue recognition from the GSK data license[426](index=426&type=chunk) - FY2025 gross margin increased to **52%** from **45%** in FY2024, largely due to the high-margin, non-recurring GSK revenue[430](index=430&type=chunk) - Sales and marketing expenses in FY2025 decreased **26%** to **$64.3 million**, primarily from a **$17.6 million** reduction in advertising and brand spending[433](index=433&type=chunk) - Restructuring charges surged to **$61.4 million** in FY2025 from **$4.6 million** in FY2024, mainly due to a **$50.5 million** charge for abandoning the Sunnyvale facility lease[435](index=435&type=chunk) - A goodwill impairment charge of **$351.7 million** was recorded in FY2024, with no corresponding charge in FY2025[436](index=436&type=chunk) [Adjusted EBITDA from Continuing Operations](index=81&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations%23Adjusted%20EBITDA%20from%20Continuing%20Operations) Adjusted EBITDA from continuing operations worsened slightly in FY2025 to a loss of $93.3 million, primarily due to decreased revenue Reconciliation of Net Loss to Adjusted EBITDA (Continuing Operations) | (in thousands) | FY 2025 | FY 2024 | | :--- | :--- | :--- | | Net loss from continuing operations | $(235,196) | $(566,941) | | **Adjustments (selected)** | | | | Depreciation, amortization and impairment | $31,422 | $14,898 | | ROU asset impairment | $33,403 | $— | | Stock-based compensation expense | $53,985 | $108,499 | | Goodwill impairment | $— | $351,744 | | Cyber Incident expenses, net | $21,386 | $1,765 | | Reorganization items | $2,215 | $— | | **Adjusted EBITDA from continuing operations** | **$(93,341)** | **$(90,878)** | - Adjusted EBITDA from continuing operations decreased by **$2.5 million** (a **3% larger loss**) in fiscal 2025 compared to fiscal 2024[467](index=467&type=chunk) [Liquidity, Capital Resources and Going Concern](index=84&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations%23Liquidity%2C%20Capital%20Resources%20and%20Going%20Concern) The company faces severe liquidity constraints and substantial doubt about its going concern ability, with $38.2 million cash and a $2.5 billion accumulated deficit - As of March 31, 2025, the company had unrestricted cash of **$38.2 million** and an accumulated deficit of **$2.5 billion**[476](index=476&type=chunk) - **Substantial doubt exists about the company's ability to continue as a going concern** for one year from the financial statement issuance date[477](index=477&type=chunk) - On May 5, 2025, the company received **$10.0 million** in borrowings under its DIP Facility to fund working capital and reorganization costs[476](index=476&type=chunk) Cash Flow Summary (Fiscal Years) | (in thousands) | FY 2025 | FY 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | $(169,585) | $(164,319) | | Net cash used in investing activities | $(3,703) | $(9,626) | | Net cash (used in) provided by financing activities | $(279) | $3,584 | [Quantitative and Qualitative Disclosures About Market Risk](index=87&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's market risk exposure to interest rates and foreign currency is minimal, as most operations are USD-denominated - The company does not believe it has **no material exposure to interest rate risk**, as its cash equivalents were liquidated post-bankruptcy filing and its cash balance is held in bank deposits[502](index=502&type=chunk) - **Foreign currency risk is minimal** as substantially all revenues and expenses are denominated in U.S. dollars[503](index=503&type=chunk) [Financial Statements and Supplementary Data](index=89&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section presents audited financial statements and KPMG's report, which includes a going concern emphasis and identifies PGS revenue recognition as a critical audit matter [Report of Independent Registered Public Accounting Firm](index=90&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data%23Report%20of%20Independent%20Registered%20Public%20Accounting%20Firm) KPMG's audit report expresses a fair presentation opinion but highlights going concern doubt and identifies PGS revenue recognition as a critical audit matter - The auditor's report includes a **'Going Concern' paragraph**, indicating **substantial doubt** about the company's ability to continue operating[509](index=509&type=chunk) - A **critical audit matter** was identified concerning the sufficiency of audit evidence for the **Personal Genome Service (PGS) revenue recognition**, due to its reliance on complex IT systems[518](index=518&type=chunk) [Consolidated Financial Statements](index=92&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data%23Consolidated%20Financial%20Statements) The consolidated financial statements show a significant decline in assets, a shift to a stockholders' deficit, and a net loss of $280.9 million for FY2025 Consolidated Balance Sheet Highlights (as of March 31) | (in thousands) | 2025 | 2024 | | :--- | :--- | :--- | | Total Assets | $159,894 | $395,167 | | Total Liabilities | $186,636 | $206,647 | | Liabilities subject to compromise | $113,504 | $— | | Total Stockholders' (Deficit) Equity | $(26,742) | $188,520 | Consolidated Statement of Operations Highlights (Year Ended March 31) | (in thousands) | 2025 | 2024 | 2023 | | :--- | :--- | :--- | :--- | | Total Revenue | $189,896 | $219,638 | $299,489 | | Net loss from continuing operations | $(235,196) | $(566,941) | $(210,694) | | Net loss from discontinued operations | $(45,689) | $(99,763) | $(100,962) | | **Net Loss** | **$(280,885)** | **$(666,704)** | **$(311,656)** | [Notes to Consolidated Financial Statements](index=97&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data%23Notes%20to%20Consolidated%20Financial%20Statements) The notes detail Chapter 11 proceedings, discontinued operations, going concern uncertainty, DIP financing, and significant charges including cyber incident settlements - The company is applying **ASC 852 bankruptcy accounting**, resulting in the reclassification of **$113.5 million** of pre-petition liabilities to 'Liabilities subject to compromise' as of March 31, 2025[542](index=542&type=chunk)[641](index=641&type=chunk) - The **Therapeutics segment is accounted for as a discontinued operation**, with general corporate overhead of **$2.4 million** in FY2025 and **$8.2 million** in FY2024 reallocated to continuing operations[644](index=644&type=chunk) - The company recognized **$17.8 million** in breakage revenue from unreturned PGS kits in fiscal 2025, down from **$22.1 million** in fiscal 2024[653](index=653&type=chunk) - The company has agreed to an aggregate of **$37.5 million** to settle U.S. claims related to the October 2023 Cyber Incident, with **$39.1 million** accrued for loss contingencies and **$18.1 million** in probable insurance recoveries[714](index=714&type=chunk)[716](index=716&type=chunk) - A **one-for-twenty reverse stock split** was effected on October 16, 2024, with all share and per-share data retroactively adjusted[543](index=543&type=chunk)[719](index=719&type=chunk) [Changes in and Disagreements with Accountants on Accounting and Financial Disclosure](index=139&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20with%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) The company reports no changes in or disagreements with its accountants on accounting and financial disclosure - None[776](index=776&type=chunk) [Controls and Procedures](index=139&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded disclosure controls were effective as of March 31, 2025, remediating a prior material weakness related to Audit Committee independence - Management concluded that disclosure controls and procedures were **effective** as of March 31, 2025[779](index=779&type=chunk) - A **material weakness** identified in Q2 and Q3 of fiscal 2025 related to the lack of an independent Audit Committee was **fully remediated** by March 31, 2025[784](index=784&type=chunk)[785](index=785&type=chunk)[786](index=786&type=chunk) - The remediation was achieved by appointing **three new independent directors** to the Board and Audit Committee on October 29, 2024[786](index=786&type=chunk) [Other Information](index=141&type=section&id=Item%209B.%20Other%20Information) The company amended its DIP credit facility on June 5, 2025, increasing the total facility size to $60.0 million - The DIP credit facility was increased to **$60.0 million** via an amendment on June 5, 2025[788](index=788&type=chunk) [Disclosure Regarding Foreign Jurisdictions that Prevent Inspections](index=141&type=section&id=Item%209C.%20Disclosure%20Regarding%20Foreign%20Jurisdictions%20that%20Prevent%20Inspections) This item is not applicable - Not applicable[790](index=790&type=chunk) Part III Part III incorporates information by reference from the 2025 Proxy Statement, covering directors, executive compensation, security ownership, and accounting fees [Directors, Executive Officers and Corporate Governance](index=141&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) Information on directors, executive officers, and corporate governance is incorporated by reference from the 2025 Proxy Statement - Information for this item is **incorporated by reference** from the 2025 Proxy Statement[792](index=792&type=chunk) [Executive Compensation](index=141&type=section&id=Item%2011.%20Executive%20Compensation) Executive and director compensation details are incorporated by reference from the 2025 Proxy Statement, including a compensation recoupment policy - The company has adopted a **compensation recoupment policy** to recover erroneously awarded incentive-based compensation following a financial restatement[793](index=793&type=chunk) [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=142&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) Security ownership and equity compensation plan details are incorporated by reference from the 2025 Proxy Statement - Information for this item is **incorporated by reference** from the 2025 Proxy Statement[795](index=795&type=chunk) [Certain Relationships and Related Transactions, and Director Independence](index=142&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Director%20Independence) Information on related person transactions and director independence is incorporated by reference from the 2025 Proxy Statement - Information for this item is **incorporated by reference** from the 2025 Proxy Statement[796](index=796&type=chunk) [Principal Accounting Fees and Services](index=142&type=section&id=Item%2014.%20Principal%20Accounting%20Fees%20and%20Services) KPMG LLP is the independent auditor, with fee details incorporated by reference from the 2025 Proxy Statement - The company's independent auditor is **KPMG LLP**[796](index=796&type=chunk)[797](index=797&type=chunk) Part IV Part IV lists exhibits filed with the Form 10-K, including key agreements like asset purchase, DIP financing, and corporate governance documents [Exhibits, Financial Statement Schedules](index=143&type=section&id=Item%2015.%20Exhibits%2C%20Financial%20Statement%20Schedules) This section indexes all exhibits filed with the Form 10-K, including key agreements like the Asset Purchase and DIP Loan agreements - The **Asset Purchase Agreement with Regeneron Pharmaceuticals**, dated May 17, 2025, is filed as Exhibit 2.5[800](index=800&type=chunk) - The **Senior Secured, Super-Priority Debtor-in-Possession Loan and Security Agreement** and its amendments are filed as Exhibits 10.29, 10.30, and 10.31[802](index=802&type=chunk) [Form 10-K Summary](index=145&type=section&id=Item%2016.%20Form%2010-K%20Summary) This item is not applicable - None[803](index=803&type=chunk)

Core Viewpoint - Regeneron Pharmaceuticals is acquiring 23andMe out of bankruptcy for $256 million, gaining access to a significant collection of genetic data and samples from over 15 million customers, which raises privacy concerns [1][4]. Company Acquisition Details - The acquisition includes 23andMe's Personal Genome Service, Total Health and Research Services, and its biobank [1]. - The deal is expected to close in the third quarter of 2025, pending bankruptcy court and regulatory approvals [2]. Privacy and Compliance - Regeneron has committed to adhering to 23andMe's consumer-privacy rules and will collaborate with a court-appointed ombudsman to ensure compliance [3]. - The company aims to protect the dataset with high standards of data privacy and security [3]. Background on 23andMe - 23andMe was once valued at over $6 billion after going public in 2021 but has since dropped to a valuation of approximately $50 million due to various issues, including a $30 million settlement related to a data breach affecting nearly 7 million users [4][5]. - The company filed for bankruptcy in March, prompting the California Attorney General to advise customers to delete their data from 23andMe's database [5][8]. Leadership Changes - Anne Wojcicki, co-founder and CEO of 23andMe, stepped down on the day of the bankruptcy filing following internal conflicts with the board [9]. - All seven independent board members of 23andMe resigned in September, indicating significant governance issues within the company [9].

Group 1 - Proactive provides fast, accessible, informative, and actionable business and finance news content to a global investment audience [2][3] - The company focuses on medium and small-cap markets while also covering blue-chip companies, commodities, and broader investment stories [3] - Proactive's news team operates from key finance and investing hubs, including London, New York, Toronto, Vancouver, Sydney, and Perth [2][3] Group 2 - Proactive employs technology to enhance workflows and has a forward-looking approach to technology adoption [4] - The company utilizes automation and software tools, including generative AI, while ensuring all content is edited and authored by humans [5]

Core Insights - The House Committee on Energy and Commerce is investigating 23andMe's Chapter 11 bankruptcy filing and is concerned about the potential compromise of sensitive genetic data [1] - Several congressmen have requested information from 23andMe regarding its data and privacy practices, highlighting ongoing concerns about the company's data security commitments [2][4] - 23andMe, which gained popularity with its at-home DNA testing kits, has faced challenges in generating recurring revenue and establishing a profitable research and therapeutics business, leading to its bankruptcy filing [3] Company Overview - 23andMe was once valued at a peak of $6 billion but has struggled financially, resulting in its assets, including a vast genetic database, being put up for sale following its bankruptcy filing in March [3] - The company has not yet responded to inquiries regarding its data security practices, raising further concerns among lawmakers [4]

The FTC has powers to protect consumers from unfair, deceptive, or fraudulent business practices and investigate suspected violations. The bankruptcy announcement on March 23 prompted warnings for 23andMe customers to ask the company to delete their data to safeguard privacy. This article has been reviewed according to Science X's editorial process and policies . Editors have highlighted the following attributes while ensuring the content's credibility: The US Federal Trade Commission (FTC) on Monday warned ...

Core Viewpoint - 23andMe has filed for Chapter 11 bankruptcy but intends to continue operations while restructuring its finances and has secured $35 million in financing for this process [3][4]. Company Overview - Founded in 2006, 23andMe has sold over 12 million DNA testing kits and has notable users such as Oprah Winfrey and Warren Buffett [3]. - The company has faced financial difficulties since 2021, including a significant workforce reduction of 40% in 2024 and the resignation of all independent directors [6]. Data Privacy Concerns - The bankruptcy filing has raised concerns about the handling of customer data, particularly genetic information, during the restructuring process [4][7]. - 23andMe's privacy policies indicate that personal information may be accessed, sold, or transferred during bankruptcy proceedings [8]. - A data breach in 2023 exposed personal information of 6.9 million users, although no genetic data was compromised [5]. Legal and Regulatory Context - Genetic information is treated similarly to personal information under privacy laws, with varying protections depending on the jurisdiction [10][11][12]. - In the U.S., there is a lack of a unified legal framework for consumer privacy, complicating the situation for 23andMe customers [12][13]. Future Outlook - 23andMe may successfully emerge from its restructuring, similar to other companies that have filed for Chapter 11 bankruptcy [9]. - The company could potentially expand licensing agreements with pharmaceutical firms to utilize customer data for research purposes [9]. Consumer Guidance - Customers are advised to consider deleting their accounts and withdrawing consent for the use of their data due to uncertainties surrounding the company's future [15][16]. - Legal experts emphasize the need for clearer regulations to protect consumer privacy, especially concerning genetic data [17].

Core Viewpoint - The announcement of 23andMe filing for bankruptcy and selling its genetic genealogy database has raised privacy concerns among its customers, prompting legal alerts regarding data deletion [1][2]. Company Overview - 23andMe, founded in 2006 by Anne Wojcicki, was the first to market direct-to-consumer genetic testing in North America, aiming to provide consumers with health information directly [6]. - The company initially thrived by capitalizing on the growing interest in genealogy and health data, but faced significant challenges, including a major data breach in 2023 that compromised the personal information of approximately 5.5 million users [12][13]. Industry Context - The consumer genetic testing industry has seen a decline in sales due to privacy concerns and market saturation, with a notable drop in demand for genetic genealogy kits over the past five years [9]. - Law enforcement's use of genetic genealogy databases has heightened consumer awareness of potential third-party data usage, leading to increased scrutiny and calls for regulatory measures [10][11]. Financial and Corporate Developments - 23andMe has expanded its operations by acquiring health services and pharmaceutical companies, but its financial stability has been jeopardized by recent events, including the bankruptcy filing [12]. - Potential buyers for 23andMe's database include large pharmaceutical companies, international buyers, and tech firms like Google and Ancestry.com, which could significantly reshape the landscape of genetic data ownership [15][16]. Privacy and Regulatory Issues - The sale of genetic databases raises concerns about changing privacy provisions, with customers uncertain about the long-term protection of their data [18]. - The rapid growth of the direct-to-consumer genetics industry has outpaced regulatory frameworks, leaving consumers vulnerable and anxious about their personal data [19].

Company Overview - Proactive is a financial news publisher that provides fast, accessible, informative, and actionable business and finance news content to a global investment audience [2] - The company has a team of experienced and qualified news journalists who produce independent content [2] Market Focus - Proactive specializes in medium and small-cap markets while also covering blue-chip companies, commodities, and broader investment stories [3] - The news team delivers insights across various sectors including biotech and pharma, mining and natural resources, battery metals, oil and gas, crypto, and emerging digital and EV technologies [3] Technology Adoption - Proactive is recognized for its forward-looking approach and enthusiastic adoption of technology to enhance workflows [4] - The company utilizes automation and software tools, including generative AI, while ensuring that all content is edited and authored by humans [5]

Core Viewpoint - 23andMe has filed for Chapter 11 bankruptcy, raising concerns about the potential sale of its extensive genetic data, which could be valuable to various entities, including biomedical startups and law enforcement [6][3][4]. Company Overview - 23andMe has sold over 12 million at-home DNA testing kits since its inception in 2006, assisting users in finding ancestors and assessing health risks [5]. - The company was once valued at $6 billion but is now undergoing bankruptcy proceedings [6]. Data Privacy Concerns - There is a significant risk that 23andMe's genetic data could be sold to the highest bidder, which raises privacy concerns for customers [2][3]. - The company asserts that the bankruptcy filing will not change how it manages customer data and that any potential buyer must comply with applicable laws regarding data treatment [9]. - A consumer privacy ombudsman may be appointed if personally identifiable information is sold during the bankruptcy process, ensuring alignment with the company's privacy policy [10][12]. Regulatory Environment - There is currently no federal genetic privacy law in the U.S., although some states, like California, have consumer protections in place [13]. - The inadequacy of 23andMe's data deletion procedures has been highlighted, as the company retains certain information even after account deletion [14]. Cybersecurity Issues - 23andMe has faced data breaches in the past, contributing to its current financial troubles [15]. - The sensitivity of genetic data is emphasized, as it not only pertains to individuals but also to their family members [15]. Customer Actions and Recommendations - Customers are advised to contact 23andMe to request data deletion, although the effectiveness of this action is uncertain [16]. - There is a call for more robust regulations regarding the handling of sensitive genetic data in the long term [16].