(Bloomberg) — Shares of DNA testing company 23andMe Holding Co. soared after Chief Executive Officer Anne Wojcicki said she was considering taking the troubled company private, less than three years after it started selling shares.
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Wojcicki told board members that she proposes to take the company in a possible private transaction, according to a filing with the Securities and Exchange Commission. The stock, which has been trading below $1 a share since late last year, rose as much as 33% on Thursday, its biggest jump since August 2022, before paring back some of its gains.
23andMe agreed to go public in 2021 through a merger with a special purpose acquisition company founded by billionaire Virgin Group founder Richard Branson. At the time, its value was estimated at $3.5 billion. In just a few years, the stock has lost more than 90% of its value as the personalized DNA revolution the company announced has been slow to catch on.
In the filing, Wojcicki indicated that she intends to retain control of the company and “will not be willing to support any alternative transaction.” The filing said she was working with advisors and planned to talk to potential partners and funding sources. Wednesday’s filing noted that she informed members of a special committee of the board about the plan on April 13.
Company representatives declined to comment.
In February, Wojcicki told Bloomberg that she was considering a number of strategies to revive the company’s declining stock price, including splitting the company’s drug development business from its consumer spit kit business.
As sales of its DNA testing kits have declined in recent years, 23andMe has turned its focus to offering subscription products in hopes of creating repeat customers for its consumer business. Its newest product, Total Health, is a $1,188 program that includes blood work and regular checkups with the company’s health care providers in addition to DNA testing. Wojcicki hopes to take the company further into the healthcare industry, making it a necessity for those interested in preventive care.
But the subscription sector has so far failed to deliver the number of signups the company initially hoped for, while the drug development sector is burning cash and the gains are likely years away.
(Updates stock trading.)
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