Once considered a NASDAQ darling just three years ago, mishap after mishap led to a steep decline in stock value for genetic-testing company, 23andMe.
Now its CEO is inching closer and closer to taking the company private.
After a 6 billion dollar valuation in 2021, what led to this dramatic decline?
23andMe Becomes A Penny Stock
Falling from being worth billions to being worth pennies, 23andMe’s quick devaluation on the stock market is a long time coming.
Anne Wojcicki cofounded the company in 2006 and it quickly rose in popularity…
Time magazine even named the product “Invention of the Year”…
No one could get enough of the DNA testing kits.
Wojcicki, CEO of the company, revolutionized the business of genetics. Thousands bought the kits, eager to find out their genetic history.
AND IN 2021, 23ANDME MADE ITS SUCCESSFUL DEBUT ON THE STOCK MARKET…
Still, not everything was as good as it seemed.
Towards the end of the 2010s and in the early 2020s, the DNA kits weren’t as popular and the company was struggling to turn a profit. They attempted introducing a subscription-based service, to no avail.
And in just three short years, 23andMe began trading at under a dollar per stock…
CURRENTLY, THEY RUN THE RISK OF BEING DELISTED FROM THE STOCK MARKET.
The Future (Or End) For 23andMe
Despite the trouble to save themselves, the company plans to shift into the pharmaceutical and drug development industry…
The only issue is that the drug industry is an expensive one to break into…
AND 23ANDME ONLY HAS ENOUGH MONEY TO LAST THEM THROUGH 2025.
To make matters worse…
A series of class action lawsuits from a severe data breach affecting millions of users…
Has left customers wary of purchasing anything related to 23andMe.
Despite 23andMe’s freefall in stock value…
Anne Wojcicki is meeting with investors to raise funds for the company…
Previously, she stated before that she is not interested in letting any other individual control the company.
Regardless, if things don’t turn around soon…
This might be the end of the (family) line for 23andMe
Be Great,
GCTV Staff
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