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23andMe

  • 19-09-2024 8:12am
    #1
    Registered Users, Registered Users 2 Posts: 716 ✭✭✭


    I’ve written here before about 23andme and its troubles. These have now taken a further step, with the company’s seven independent directors stepping down, a move that is a protest at the way the company is being run. For some time it has been ‘rudderless’ due to indecision/differences of opinion on strategy. These resignations will enable it to go down the ‘medical research’ route fully, rather than genealogy. Key shareholder ego is largely to blame IMO.

    https://investors.23andme.com/news-releases/news-release-details/independent-directors-23andme-resign-board?fbclid=IwY2xjawFYuIVleHRuA2FlbQIxMAABHTF1aViBE5Fq0fxMTiOzrSFxLIEeZ60VmQ34rNW6-nqgNLZR6Yq4ih723Q_aem_Eq8iUbmUlrg59QMihFip6w



Comments

  • Moderators, Society & Culture Moderators Posts: 6,706 Mod ✭✭✭✭pinkypinky


    Yeah, I requested a download of my aunt's raw data but it hasn't come through yet. Will have to root around and see if I have a previous copy. I'm tested there myself too but am in all the databases, so if they go bust, I'm not too concerned about my own kit.

    Genealogy Forum Mod



  • Registered Users, Registered Users 2 Posts: 716 ✭✭✭Mick Tator


    I cannot see then ‘going bust’, but the company will change considerably henceforth. I fully agree it would be a good idea to get a data dump of test results. The co-founder, key shareholder and CEO is Anne Wojcicki, ex-wife of Sergei Brin, co-founder of Google, so cash is not an issue (even though 98% of her investment has disappeard!). The core asset is about 10 million DNA tests, a sizeable database. There are other shareholders, and a chunk of equity is on the stock market. Her background is biomedical research, her stated purpose when the business launched was to use customers’ DNA to work on disease research and develop new medical products, hence the partnership with GlaxoSmithKline some years ago. Genealogy always was a side-gig, it became a medical company.

    23andme was less than clear about data use, and came across as arrogant in their approach, hence my reluctance to test with them despite having a high number of matches there. When they eventually owned up to a cyber attack & serious data breach, their IT management systems and their crisis management were shown to be seriously flawed. No doubt other shareholders (VCs, ETF's, etc. )saw this and put on pressur. The fact that all 7 non-exec directors have ‘walked’ is a serious blow to image and how she is running the business. She's trying to buy out the others at a bargain basement price. I’d bet there will be some interesting legal actions in the pipeline!



  • Registered Users, Registered Users 2 Posts: 716 ✭✭✭Mick Tator


    Update -

    Over the last couple of weeks 23andMe has made almost a dozen SEC filings that indicate it, through a bit of financial jiggery-pokery with its share structure, has scraped through the minimum standards to maintain its listing on Nasdaq. The news was contained in 23’s rather bland press release, and it has not made any further comment.

    The outlook IMO remains very negative, with a reported 34% decrease in Q1 2024 turnover, dropping to $40 million, primarily due to the termination of the GSK partnership. Its net loss was $69 million compared to the previous year's $105 million, so it’s still burning cash.

    23 still sees genetic testing for health risks as the way forward – it’s banking on subsidiary Lemonaid Health which introduced a new monthly subscription weight loss program. IMO that indicates a very challenging future for the company.

    It has not been profitable over the last twelve months, and revenue for Q1 2024 was $199.19 million, down one third over the same period last year. This decline, coupled with a negative operating income ( -128.25%)!!, highlights the challenges it faces to survive. It does have plenty of cash which will provide some more time and flexibility to improve but that will burn quickly.

    The firm was worth $6 billion in a couple of years ago and is now worth $125.83 million, (yes, a drop of 98%!) Download your records.

    Post edited by Mick Tator on


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