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The Stock Price Of 23andMe Could Be Revived By Splitting The Company



The Stock Price Of 23andMe Could Be Revived By Splitting The Company

(CTN News) – 23andMe’s stock fell by 21% on Thursday, a day after the company reported dismal fiscal third-quarter results and discussed splitting itself in two.

In the same quarter last year, 23andMe generated $67 million in revenue. In the preceding quarter, the company lost $92 million, or 20 cents per share, but this quarter, it lost $278 million, or 58 cents per share.

Thursday’s stock price was around 56 cents.

The Nasdaq Listing Qualifications Department gave 180 days in November to restore its share price above $1, according to a Securities and Exchange Commission filing. The exchange will delist 23andMe if it fails to comply.

Anne Wojcicki, co-founder and CEO of, said the company may split its consumer and therapeutics businesses to help grow its investor base.

“We have not made any definitive decisions yet, but there are definitely opportunities and things we are exploring around potentially having therapeutics be independent versus consumer-based,” she said.

DNA testing kits developed by 23andMe, founded in 2006, give consumers insight into their ancestry and genetic profiles. In 2021, 23andMe went public via a merger with a special purpose acquisition company, valued at around $3.5 billion.

Following the IPO, Wojcicki briefly rose to billionaire status, landing spots on Forbes’ “Power Women” and “America’s Self-Made Women” lists.

Due to the fact that consumers only needed to take 23andMe’s DNA test once, the company has struggled to generate steady recurring revenue. Since its peak, the company has launched additional therapeutics and research businesses, but its share price has plummeted more than 95%.

Compared to its guidance last quarter, 23andMe expects to generate revenue between $215 million and $220 million in fiscal 2024.

In addition to the data breach revealed late last year, 23andMe has also been hit with more than 30 class-action lawsuits. Up to 6.9 million people’s sensitive information was accessed by hackers, including names, birth dates, ancestry reports, and more.

Joe Selsavage, the company’s CFO, said the data breach has cost the company $2.7 million so far.

During the earnings call, Selsavage said, “We now require two-factor authentication from all of our customers, because we realize that our business runs on trust.”

Citi analysts said they are cautious about 23andMe’s outlook due to ongoing class-action claims and “persistent headline/reputational risk.” The firm lowered its price target from 90 cents to 85 cents.


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