In this article, 23andMe reported a decrease in revenue in its most recent quarter, following the announcement of a 40% reduction in its workforce and the closure of its therapeutics business as part of a restructuring plan. The genetics company disclosed $44.1 million in revenue for the fiscal second quarter, down from $50 million in the same period last year. The net loss of 23andMe decreased to $59.1 million, or $2.32 per share, from $75.27 million, or $3.17 per share, a year ago.
On Monday, 23andMe revealed plans to cut over 200 jobs, halt all therapeutics programs, and conclude ongoing clinical trials promptly. The company is exploring strategic options like asset sales and licensing agreements to optimize the value of the therapeutic programs. CEO Anne Wojcicki expressed gratitude to the team for their dedication and emphasized the focus on the long-term success of the core consumer business and research partnerships.
The company mentioned its intention to potentially raise additional capital. Despite a 75% decline in shares this year and a market cap nearing $100 million, 23andMe’s shares rose by 2% on Tuesday. Wojcicki, a co-founder of 23andMe, has been steering efforts to sustain the company’s operations, including a reverse stock split in October to prevent delisting from the Nasdaq.
In September, all seven independent directors resigned from the board, citing disagreements with Wojcicki on the company’s strategic direction. Three new independent directors were appointed in late October to address the situation. Wojcicki highlighted the company’s compliance with NASDAQ listing standards during the earnings call on Tuesday.
While Wojcicki has expressed intentions to privatize 23andMe, she did not discuss these plans on Tuesday. In a filing with the SEC in September, she indicated a preference for taking the company private rather than considering third-party takeover proposals. 23andMe declined to provide further comments.
