Anne Wojcicki's Nonprofit Secures 23andMe Assets for $305 Million
Anne Wojcicki, co-founder and former CEO of the genetic testing pioneer 23andMe, has regained control of the company’s assets through her newly formed nonprofit, TTAM Research Institute. The group successfully outbid competitors to acquire nearly all of 23andMe’s operations for $305 million, marking a dramatic chapter in the beleaguered company’s recent history.
The Road to Bankruptcy and a Competitive Buyout
Earlier this year, 23andMe filed for Chapter 11 bankruptcy protection, struggling with stalled growth and mounting operational challenges. In a prior auction, pharmaceutical giant Regeneron had emerged as the front-runner with a bid of $256 million, intending to purchase most of 23andMe’s assets. However, Wojcicki’s TTAM Research Institute stepped in with a higher offer, prompting a reopening of the auction process.
TTAM — an acronym derived from the initials of 23andMe — plans to acquire core business segments, including the Personal Genome Service, Research Services, and telehealth subsidiary Lemonaid Health. This transition represents a strategic move by Wojcicki to continue advancing the company’s original mission under a nonprofit structure.
Wojcicki’s Vision Moving Forward
Expressing optimism, Wojcicki stated, “I am thrilled that TTAM Research Institute will be able to continue the mission of 23andMe to help people access, understand and benefit from the human genome.” Her commitment reflects a desire to preserve the company’s pioneering role in consumer genetics and health insights.
From Rapid Rise to Operational Hurdles
23andMe skyrocketed in popularity with its at-home DNA testing kits, offering customers a window into their ancestry and genetic makeup. After going public in 2021 through a merger with a special purpose acquisition company, it reached a peak valuation of about $6 billion. Yet, post-IPO, the company faced difficulties establishing a sustainable revenue stream and scaling its research and therapeutics divisions.
Privacy concerns also cast a shadow over its reputation, particularly following the loss of data connected to nearly seven million customers in 2023.
Pending Approval and Industry Implications
TTAM’s acquisition deal remains subject to approval by the U.S. Bankruptcy Court for the Eastern District of Missouri. If greenlit, the move will allow 23andMe to pivot under a nonprofit umbrella, potentially reshaping its business model and renewing focus on genomic accessibility.
What Lies Ahead?
- Continuation of genetic testing services and research efforts.
- Potential restructuring aimed at addressing past revenue challenges.
- Renewed attention on consumer privacy and data protection practices.
The acquisition underscores a growing trend in biotech where innovative startups face complex paths to profitability, often requiring creative ownership and funding structures to sustain their missions.
