The logo at the 23andMe headquarters in Sunnyvale, California, United States, Wednesday, January 27, 2021.
David Paul Morris | David Paul Morris Bloomberg | Getty Images
23 and me Revenue fell in the latest quarter on Tuesday, a day after the company said it would cut 40% of its workforce and close its therapeutics business as part of a restructuring plan. Business restructuring plan.
The genetics company reported fiscal second-quarter revenue of $44.1 million, down from $50 million a year earlier. 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.
The embattled genetic testing provider said on Monday it would cut more than 200 jobs, halt all treatment programs and end ongoing clinical trials “as soon as possible.” It is evaluating strategic options such as asset sales and licensing agreements to “maximize the value” of its treatment programs, the release said.
“In reorganizing 23andMe, we are taking these difficult but necessary actions and focusing on the long-term success of our core consumer business and research partnerships,” 23andMe CEO Anne Wojcicki said in a press release Monday. “I want to We 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 on Tuesday it was exploring the possibility of raising additional capital.
23andMe shares fell slightly on Tuesday. After losing more than half its market value in 2023, the company’s stock price has fallen 75% this year, bringing the company’s market value to nearly $100 million.
Wojcicki co-founded 23andMe in 2006 and has worked to keep the company afloat after it faced delisting from Nasdaq. Shares were hovering below $1 until 23andMe announced a 20-for-1 deal reverse stock split October.
In September, seven of the company’s independent directors suddenly resigned from the board, saying in a letter that they disagreed with Wojcicki’s views on the “strategic direction of the company.” In late October, three new independent directors were appointed to the board.
“We have met our obligations as a public company and returned to compliance with Nasdaq listing standards by restructuring our board of directors and executing a reverse stock split,” Wojcicki said on 23andMe’s earnings call Tuesday.
Wojcicki has repeatedly said she intends to take 23andMe private, but she did not disclose the plan Tuesday. in a Filing in September She told the Securities and Exchange Commission that she would not consider third-party takeover offers and said the “best path forward” was for her to take the company private.
23andMe declined to comment.
watch: The rise and fall of 23andMe
About The Author
