Signage at the 23andMe headquarters in Sunnyvale, California, U.S., on Wednesday, January 27, 2021.
David Paul Morris | Bloomberg | fake images
23yyo It reported a decline in revenue in its most recent quarter on Tuesday, a day after the company said it will cut 40% of its workforce and close its therapeutics business as part of a business restructuring plan.
The troubled genetics company reported $44.1 million in revenue for the fiscal second quarter, up from $50 million in the same period last year. 23andMe's net loss narrowed to $59.1 million, or $2.32 per share, from $75.27 million, or $3.17 per share, a year ago.
23andMe said Monday that it will eliminate more than 200 jobs, discontinue all of its therapeutic programs and end its ongoing clinical trials “as quickly as possible.” It is evaluating strategic options such as asset sales and licensing agreements to “maximize the value” of the therapeutic programs, according to the statement.
“We are taking these difficult but necessary steps as we restructure 23andMe and focus on the long-term success of our core research partnerships and consumer businesses,” 23andMe CEO Anne Wojcicki said in Monday's statement. “I want to thank our team for their hard work and dedication to our mission. We are fully committed to supporting employees impacted by this transition.”
The company said Tuesday that it is looking to potentially raise additional capital.
23andMe shares closed up 2% on Tuesday. They have fallen about 75% this year after losing more than half their value in 2023, taking the company's market capitalization to $100 million.
Wojcicki, who co-founded 23andMe in 2006, has been working to keep the company afloat after it risked being delisted from the Nasdaq. The stock was hovering below $1 until 23andMe announced a 1-for-20 reverse stock split in October.
In September, the company's seven independent directors abruptly resigned from the board of directors, writing in a letter that they disagreed with Wojcicki over the “strategic direction of the company.” Three new independent directors were appointed to the board at the end of October.
“We have met our obligations as a public company and regained compliance with NASDAQ listing standards by reconstituting our board and executing a reverse stock split,” Wojcicki said during 23andMe's earnings call on Tuesday.
Wojcicki has repeatedly said he intends to take 23andMe private, although he did not address the plans on Tuesday. In a September filing with the SEC, it said it would not consider third-party acquisition proposals and said the “best path forward” is to take the company private.
23andMe declined to comment.
LOOK: The rise and fall of 23andMe
