Biotech company 23andMe, known for its direct-to-consumer genetic-testing kits, has filed for bankruptcy. The move caused the company’s stock to crash in pre-market trading and resulted in co-founder Anne Wojcicki resigning as the CEO.
23andMe has been recently going through a rough patch, being forced to lay off 40% of its employees in November while halting projects related to the development of therapies. The company is now looking to sell itself and believes Chapter 11 will help speed up the process.
“After a thorough evaluation of strategic alternatives, we have determined that a court-supervised sale process is the best path forward to maximize the value of the business,” Chair Mark Jensen said in a statement.
Wojcicki made several attempts to take the company private again, but her takeover proposals have been rejected by the 23andMe board. Back in February, she offered $2.53 per share, valuing the company at around $75 million. She then came back with another bid earlier this month, offering $0.41 per share.
Following the bankruptcy filing, Wojcicki, who kept her board of directors seat, said she would make a new offer.
23andMe stock closed at $1.79 per share on Friday, already being down 49.58% since the start of the year. It plunged by another 43.58% in Monday’s pre-market trading.