23andMe Stock Plunges 10.96% Amid Bankruptcy Filing

On March 25, 2025, 23andMe's stock price dropped by 10.96% in pre-market trading, marking a significant decline for the genetic testing company.

23andMe has filed for Chapter 11 bankruptcy protection, initiating the process of selling off its assets. This move comes after the company's market capitalization plummeted from a peak of $6 billion to just $50 million. The bankruptcy filing was preceded by the resignation of its CEO, Anne Wojcicki, who had made unsuccessful efforts to buy the company back and take it private.

The company's struggles are rooted in its business model, which relies on a single purchase item—the genetic test. Efforts to offer subscriptions and license data to pharmaceutical companies have failed to generate significant revenue. Additionally, 23andMe has faced growing concerns about user privacy, with the California Attorney General urging customers to delete their genetic data.

Despite these challenges, Wojcicki remains committed to the company's long-term vision of being a global leader in genetics. She has indicated that she will continue pursuing efforts to secure the company's assets through the restructuring process. However, the stock is now facing potential delisting from Nasdaq, which requires companies to maintain a minimum share price of $1 to stay in compliance.