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23andMe Inc., once a trailblazer in consumer DNA testing, has filed for Chapter 11 bankruptcy protection in Missouri court, marking a dramatic turn for a company that once promised to revolutionize personal genomics. Saddled with $214 million in debt, the embattled biotech firm now seeks a buyer through a court-supervised sale, hoping to salvage its vision of democratizing genetic insights.

CEO Steps Down as Company Faces Uncertain Future

In a late-Sunday announcement, 23andMe confirmed that longtime CEO Anne Wojcicki has stepped down from her role. However, she will retain a seat on the board as the company navigates its restructuring.

Board Chair Mark Jensen underscored the gravity of the situation. "We expect the court-supervised process will advance our efforts to address the operational and financial challenges we face, including further cost reductions and the resolution of legal and leasehold liabilities," he said.

Despite its financial woes, Jensen remained optimistic, emphasizing the company's commitment to its core mission: "We believe in the value of our people and our assets and hope that this process allows our mission of helping people access, understand, and benefit from the human genome to live on for the benefit of customers and patients."

A 45-Day Race Against Time

23andMe has launched a fast-track, 45-day marketing campaign to secure a buyer for its assets. Investment banking firm Moelis & Company LLC has been tapped to lead the effort. The company also secured a crucial financial lifeline—a $35 million debtor-in-possession financing commitment from JMB Capital Partners—to sustain operations during the bankruptcy process.

Data Privacy Concerns Addressed

With millions of customers entrusting 23andMe with sensitive genetic data, concerns over privacy loom large. The company reassured users that there will be no changes to its data storage and protection policies. Any potential buyer, it stated, must adhere to all applicable data protection laws.

Legal Counsel and Next Steps

The company has enlisted heavyweight law firms Paul, Weiss, Rifkind, Wharton & Garrison LLP and Morgan, Lewis & Bockius LLP to steer it through the Chapter 11 process.

As the bankruptcy court takes up the case, 23andMe faces a critical juncture: Will a buyer step in to rescue the embattled pioneer, or will the company that once helped millions uncover their genetic past become a relic of the biotech boom?