Signage at 23andMe headquarters in Sunnyvale, California, USA, on Wednesday, January 27, 2021.
David Paul Morris | Bloomberg | Getty Images
23andMe reported declining sales in its most recent 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 business restructuring plan.
The troubled genetics company reported revenue of $44.1 million in its fiscal second quarter, compared with $50 million in the same period last year. 23andMe's net loss narrowed to $59.1 million, or $2.32 per share, compared to $75.27 million, or $3.17 per share, a year ago.
23andMe said Monday that it would cut more than 200 jobs, halt all of its therapeutic programs and terminate its ongoing clinical trials “as quickly as possible.” It is exploring strategic options such as asset sales and licensing agreements to “maximize the value” of the therapeutic programs, the press release said.
“We are taking these difficult but necessary actions as we restructure 23andMe and focus on the long-term success of our core consumer and research partnerships businesses,” Anne Wojcicki, CEO of 23andMe, said in Monday’s press release. “I would like to thank our team for their hard work and commitment to our mission. We are fully committed to supporting employees affected by this transition.”
The company said Tuesday it may look to raise additional capital.
Shares of 23andMe closed up 2% on Tuesday. They have slumped about 75% this year after losing more than half their value in 2023, pushing the company's market cap to $100 million.
Wojcicki, co-founder of 23andMe in 2006, has worked to keep the company afloat after it was in danger of being delisted from Nasdaq. Shares hovered below $1 until 23andMe announced a 1-for-20 reverse stock split in October.
In September, all seven of the company's independent directors suddenly resigned from the board, writing in a letter that they disagreed with Wojcicki over the “strategic direction of the company.” At the end of October, three new independent directors were appointed to the board.
“We have met our obligations as a publicly traded company and regained compliance with NASDAQ listing standards by reconstituting our board of directors and executing a reverse stock split,” Wojcicki said during 23andMe's conference call on Tuesday.
Wojcicki has repeatedly said she intends to keep 23andMe private, but did not comment on the plans Tuesday. In a September filing with the SEC, it said it would not consider third-party takeover proposals and said the “best path forward” was for it to take the company private.
23andMe declined to comment.
REGARD: The rise and fall of 23andMe
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