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23andMe, which had a $1.75 billion valuation in 2017, filed for Chapter 11 bankruptcy on March 23. Anne Wojcicki, who co-founded the company in 2006, announced her immediate departure but will remain on the board. Joe Selsavage, who has served as CFO of 23andMe since September 2022, has been named interim CEO.
The executive shakeup follows the board’s rejection of Wojcicki’s acquisition offer to purchase all outstanding shares for $0.41 each. Selsavage joined the company in 2021 after Lemonaid, a telehealth provider where he served as CFO, was acquired by 23andMe for $400 million. He is now tasked with leading the company through a court-approved sale process within 45 days.
The New England Journal of Medicine recently raised concerns about the sale of 23andMe’s genetic dataset to the highest bidder. The company has collected more than 15 million genetic samples, which are expected to be among the most valuable assets included in the bankruptcy proceedings.
Researchers from the journal also noted the legal framework protecting this type of data is weak. The Genetic Information Nondiscrimination Act and the Health Insurance Portability and Accountability Act do not prohibit the sale of genetic data.
The U.S. also lacks a comprehensive federal privacy law comparable to the EU’s General Data Protection Regulation. Some states, including California and Illinois, have their own privacy laws, but enforcement is limited.
Although the company told users privacy and security were a priority, user data was compromised during a cybersecurity breach in 2023. While users are being advised to remove their personal data from 23andMe, researchers from the NEJM caution that these efforts may have little impact.
“Despite providing customers with some choices about the use of their data, 23andMe’s privacy statement reserves the company’s right to transfer customers’ personal information in the event of a sale of the company or bankruptcy,” researchers wrote. “Customers can’t fully protect their data from being accessed, sold or transferred as part of that transaction.”
Here’s a list of important market events slated for the week ahead.
