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23andMe (NASDAQ:ME) CEO Anne Wojcicki is considering a proposal to take the struggling DNA-testing company private, just under three years since its market debut, according to an exchange filing.
The filing noted that Wojcicki, who holds a 25.8% stake in 23andMe (ME), wished to maintain control of the company and wouldn’t support any alternative transaction.
23andMe (ME), which had a market value of over $6B at its peak, has seen its stock crater over the years as its DNA tests were no longer as popular as they once were. Its current market capitalization is just $188.4M.
The company tried to diversify its revenue streams by offering annual subscriptions, but these weren’t successful as customers only needed to take its tests once. It attempted to enter the telehealth industry through its Lemonaid Health acquisition.
23andMe (ME) tried to foray into prescription drug development, but this business required a lot of cash and it would’ve taken years to pay off. It had cash and cash equivalents of $242.4M as of the end of 2023, which would’ve covered expenses only till early 2025.
The firm had been considering splitting its therapeutics and consumer businesses to boost its stock price and maintain its Nasdaq listing.
