23andMe cofounder says company 'lost its way' without 'proper governance'

Core Insights - 23andMe cofounder Linda Avey expressed disappointment over the company's decline and criticized former CEO Anne Wojcicki for her leadership decisions, particularly after Avey's departure in 2009 [1][2] - The company filed for Chapter 11 bankruptcy protection and announced Wojcicki's resignation, marking a significant turning point for the biotech firm [1][8] - Avey highlighted the potential of 23andMe to become a leading digital health platform, emphasizing the importance of consumer-focused product development and proper governance [2][4] Company Background - 23andMe was founded nearly twenty years ago, specializing in direct-to-consumer DNA test kits and genetic research [1] - The company has built one of the largest genetic data collections globally, with over 14 million consumers engaged [2] Leadership and Governance Issues - Avey criticized the lack of board governance after her departure, stating that Wojcicki's control led to a decline in the company's strategic direction [2][4] - The independent directors of 23andMe's board resigned in 2024, indicating disagreements on the company's future strategy [7] Financial and Operational Challenges - 23andMe has faced significant operational challenges, including a restructuring that resulted in a 40% staff layoff and the cessation of its therapeutics program [8] - The company is currently seeking a buyer through a court-supervised sale process to address its financial difficulties [10] Data Privacy Concerns - The company has been plagued by privacy issues, including a data breach affecting nearly 7 million users, which led to a $30 million settlement [6] - Consumer concerns over data security have intensified, particularly following Wojcicki's consideration of third-party takeover proposals [8]