NEW YORK — All of 23andMe's independent directors resigned from its board this week, a rare move that marks the latest challenge for the genetic-testing company.
The resignations follow drawn-out negotiations with 23andMe CEO and co-founder Anne Wojcicki, who wants to take the company private. In a Tuesday letter addressed to Wojcicki, the seven directors said they had yet to receive a ''a fully financed, fully diligenced, actionable proposal that is in the best interests of the non-affiliated shareholders'' from the chief executive after months of efforts.
The directors said they would be resigning effective immediately — arguing that, while they still believed in 23andMe's mission, their departures were for the best due to Wojcicki's concentrated voting power and a ''clear'' difference of opinion on the company's future.
Wojcicki later responded to the resignations in a memo to employees, published in a securities filing, saying she was ''surprised and disappointed'' by the directors' decision. Still, she maintained that taking 23andMe private and ''outside of the short term pressures of the public markets'' would be best for the company long term.
Wojcicki added that 23andMe would immediately be identifying independent directors to join the board. Wojcicki, who holds 49% of the voting power at 23andMe, was the only remaining board member listed on the company's website as of Thursday. A spokesperson had no further updates to share when reached by The Associated Press.
23andMe, which went public in 2021, has struggled to find a profitable business model since. The company reported a net loss of $667 million for its last fiscal year, more than double the loss of $312 million for the year prior.
Shares for 23andMe have also plummeted — with the company's stock closing at 33 cents Thursday, down more than 97% since its 2021 stock market debut, according to FactSet.
Wojcicki announced her intention to take 23andMe private, by way of acquiring all outstanding shares that she doesn't own, in April. Wojcicki also said that she wished to maintain control of the company and was not willing to support alternative transactions from other bidders. She submitted a proposal in late July, but the board's evaluating committee found it to be wanting.
