Anne Wojcicki Reclaims 23andMe in $305 Million Bankruptcy Auction
Anne Wojcicki, co-founder of 23andMe, has emerged victorious in a high-stakes bankruptcy auction to regain control of the struggling genetics testing company she built. Her non-profit, TTAM Research Institute, secured the winning bid of $305 million, outpacing a prior offer from biotech giant Regeneron Pharmaceuticals. Crucially, the acquisition does not include any of 23andMe’s existing liabilities.
A Battle for Ownership
23andMe had filed for bankruptcy in March after years of declining revenue and repeated rejections of go-private offers from Wojcicki herself. In May, Regeneron was named the winning bidder after offering $256 million. However, TTAM accused the company and its advisers of ending the auction prematurely, denying them the opportunity to submit a higher bid.
TTAM claimed it had secured financial backing from a Fortune 500 company with over $400 billion in market capitalization and $17 billion in cash, which strengthened its position in the renewed auction rounds.
A Court-Ordered Second Chance
A federal bankruptcy court in Missouri held a fresh round of bidding to allow TTAM to formally submit its higher offer. Regeneron had the chance to counter TTAM’s final bid but declined to do so. As a result, it will receive a $10 million termination fee as stipulated in the earlier agreement.
The court is expected to approve TTAM’s winning bid in a hearing set for next week.
Privacy Concerns and Legal Shadows
While Wojcicki’s re-involvement may ease some data privacy concerns, several U.S. states had initially objected to the idea of sensitive genetic data being transferred to a new owner. These concerns intensified due to a 2023 data breach that exposed 7 million user accounts under Wojcicki’s leadership. An expert appointed by the court acknowledged the breach in a recent report, though the liability remains with the bankruptcy estate.
Litigation related to the breach is still ongoing but will be addressed using proceeds from the sale.
A Rise, Fall, and Possible Revival
Founded in 2006, 23andMe made waves by offering direct-to-consumer DNA testing kits. The company went public in 2021 through a SPAC merger backed by Richard Branson, achieving a peak market cap of nearly $6 billion. However, failure to diversify beyond consumer genetic testing led to years of declining revenue.
Wojcicki had previously offered to buy back the company at just 40 cents per share before bankruptcy. Now, shares, trading over the counter, have soared to $5.49, driven by optimism that the company may rebound under Wojcicki’s renewed leadership.
The Road Ahead
TTAM’s acquisition marks a dramatic return for Wojcicki and offers 23andMe a second chance at stability. With fresh backing, reduced liabilities, and continued customer trust at stake, the coming months will determine if the iconic genetic testing firm can regain its footing in the biotech world.