Genetic testing giant 23andMe has filed for Chapter 11 bankruptcy protection, marking a dramatic fall for a company once hailed as a pioneer in consumer DNA analysis. The Silicon Valley-based firm, valued at $6 billion during its 2021 SPAC merger, disclosed this week that it is actively seeking a buyer while grappling with mounting customer attrition and regulatory scrutiny over data privacy practices.
Experts attribute the decline to shifting consumer sentiments toward genetic data privacy, with rivals offering more stringent security assurances. "The biotech sector is learning that trust is as vital as innovation," said Dr. Helena Zhou, a biotechnology analyst at Singapore’s Nanyang Technological University.
Once a Wall Street darling, 23andMe expanded rapidly by offering ancestry reports and health risk assessments. However, recent breaches compromising 6.9 million user profiles fueled skepticism. Analysts note the bankruptcy highlights broader challenges in balancing personalized healthcare advancements with data protection expectations across global markets, including Asia’s rapidly growing biotech sector.
