23andMe CEO Anne Wojcicki Plans to Take Company Private
23andMe CEO Anne Wojcicki Plans to Take Company Private
The DNA-testing companys enterprise value is less than zero as its shares close at a new low
By
Rolfe Winkler
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Updated April 17, 2024 9:12 pm ET
23andMes stock closed at a new low of 36 cents a share Wednesday. PHOTO: TIFFANY HAGLER-GEARD/BLOOMBERG NEWS
Snip...after three years in public markets that saw the once-hot companys valuation collapse from a high of $6 billion.
Snip...she is working with advisers to help craft a potential deal and intends to speak with potential partners and financing sources. The filing said she would oppose any other buyer taking over the company. She holds 49.99% voting power in the company, which would make it all but impossible for anyone else to buy it.
23andMes stock closed at 36 cents a share on Wednesday, a new low that translates to a market capitalization of about $200 million. 23andMe had more than that amount of cash in the bank at the end of last quarter, meaning the companys enterprise value is negative.
Snip...DNA tests arent as popular as they once were and lose money. Snip... since customers only need to take its test once.
Wojcicki pivoted the company into prescription drug development, hoping to use its massive DNA database to discover new pharmaceuticals. But drug discovery is a cash-hungry business in which prospects can take a decade to pay off. The company has enough cash to last until 2025 at its current rate of spending. It has potential drug candidates in the pipeline, and taking the company private while securing additional financing could give it more leeway to get them to market.
Snip...more...
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