23andMe

23andMe was one of the most recognized consumer biotech brands when it merged with VG Acquisition Corp, a SPAC backed by Richard Branson's Virgin Group, in June 2021. CEO Anne Wojcicki pitched a dual business model: consumer DNA testing kits and a drug discovery platform using the company's massive genetic database.

The consumer genetics business had peaked before the SPAC merger. New kit sales plateaued as the novelty wore off, and the addressable market proved smaller than projected. The drug development pipeline — meant to justify the premium valuation — progressed slowly, with no blockbuster candidates emerging.

In October 2023, 23andMe disclosed a devastating data breach affecting 6.9 million users. Hackers exploited the 'DNA Relatives' feature to scrape genetic and ancestry information. The breach triggered lawsuits, regulatory scrutiny, and a massive erosion of consumer trust. Several board members resigned, including all independent directors by September 2024.

With the stock in penny-stock territory, CEO Wojcicki made multiple attempts to take the company private, all rejected by a special committee. By March 2025, 23andMe filed Chapter 11 bankruptcy, raising alarming questions about what would happen to the genetic data of 15 million customers. Privacy advocates warned that the DNA database — one of the world's largest — could be sold to the highest bidder in bankruptcy proceedings.