Anne Wojcicki, CEO, Co-Founder, and Chair of the Board of Directors of 23andMe Holding Co., is considering a significant move for the company, potentially taking the genetics testing and biopharmaceutical enterprise private. In response to a recent decline in share price and enterprise value, Wojcicki disclosed in an amendment to her Schedule 13D filing with the Securities and Exchange Commission, dated April 17, 2024, her contemplation of acquiring all outstanding shares of 23andMe not already owned by her. Wojcicki is a major shareholder, possessing over 20% of the company’s total outstanding shares, which grants her approximately 49% of the voting power.

The announcement was made amidst considerations by 23andMe’s Board of Directors regarding the future of the company, recognizing the need to explore strategic alternatives to maximize shareholder value. On March 28, 2024, the board formed a Special Committee comprised of independent directors for this purpose. This committee is tasked with evaluating Wojcicki’s potential proposal alongside other strategic options, which include continuing the operations as a public entity. The importance of this evaluation stems from Wojcicki’s clear indication of her desire to maintain control over the company and her unwillingness to entertain alternative transactions.

23andMe has engaged Wells Fargo for financial advice and Dechert LLP for legal counsel to assist in this critical juncture. The Special Committee emphasizes its commitment to acting in the best interests of both 23andMe and its shareholders, although it acknowledges that there is no guarantee of a specific outcome from this process. The company has announced that it will not be providing further comments on the matter until it deems additional disclosure to be appropriate or necessary as mandated by law.

23andMe, based in South San Francisco, Calif., has positioned itself as a leader in consumer genetics and healthcare, as well as biopharmaceuticals, aiming to empower a healthier future through its innovative offerings. However, the decision to potentially take the company private is surrounded by uncertainties and risks that might affect anticipated plans and performances. As outlined in their forward-looking statements, these include but are not limited to, risks detailed in the company’s filings with the Securities and Exchange Commission, emphasizing the unpredictable nature of business decisions and market reactions.

This strategic contemplation by Wojcicki and the ensuing evaluation by the board’s Special Committee underscore the dynamic and challenging environment in which 23andMe operates. As the process unfolds, stakeholders are watching closely, aware that the outcome could significantly reshape the company's trajectory and impact on the genetics and healthcare industry.