What went wrong at 23andMe? Why the genetic-data giant risks collapse
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23andMe analyses DNA in saliva provided by customers to product genealogy information and health-risk predictions. Credit: Tiffany Hagler-Geard/Bloomberg via Getty
The once-thriving consumer genetic-testing company 23andMe is struggling to stay afloat — raising concerns about what might happen to its customers’ data and the broader industry.
The decline marks a fall from grace for a pioneering company once valued at US$6 billion. Over the past few years, the firm has faced mounting challenges, including financial losses and a huge data breach, although this did not involve DNA data. In September, most of the company’s board resigned, and in November the firm said it would cut 40% of its workforce and halt its therapeutics division, which had drugs in clinical trials.
Founded in 2006, 23andMe built its business by asking paying customers to send samples of saliva, from which they extract and sequence DNA to analyse for information about ancestry, family traits and potential health risks. Some 15 million people have sold their DNA to the company, based in Sunnyvale, California. Of those, around 80% consented to have their genetic information used for research.
