Signage at 23andMe headquarters in Sunnyvale, California, U.S., on Wednesday, Jan. 27, 2021.
David Paul Morris | Bloomberg | Getty Photos
23andMe on Tuesday reported declining income in its most up-to-date quarter, a day after the corporate stated it can minimize 40% of its workforce and shutter its therapeutics enterprise as a part of a enterprise restructuring plan.
The genetics firm reported $44.1 million in income for the fiscal second quarter, down from $50 million in the identical interval final 12 months. 23andMe’s internet loss narrowed to $59.1 million, or $2.32 per share, from $75.27 million, or $3.17 per share, a 12 months in the past.
The embattled genetic testing supplier stated Monday that it is eliminating greater than 200 jobs, discontinuing all its therapeutics applications and winding down its ongoing scientific trials “as shortly as sensible.” It is evaluating strategic choices equivalent to asset gross sales and licensing agreements to “maximize the worth” of the therapeutic applications, the discharge stated.
“We’re taking these troublesome however crucial actions as we restructure 23andMe and deal with the long-term success of our core client enterprise and analysis partnerships,” 23andMe CEO Anne Wojcicki, stated within the launch Monday. “I wish to thank our crew for his or her arduous work and dedication to our mission. We’re absolutely dedicated to supporting the staff impacted by this transition.”
The corporate stated Tuesday that it is seeking to probably increase further capital.
Shares of 23andMe had been down barely on Tuesday. They’ve slumped 75% this 12 months after dropping greater than half their worth in 2023, pushing the corporate’s market cap towards $100 million.
Wojcicki, who co-founded 23andMe in 2006, has been working to maintain the corporate afloat after it confronted the chance of being delisted from the Nasdaq. Shares had been hovering beneath $1 till 23andMe introduced a 1-for-20 reverse inventory cut up in October.
In September, all seven of the corporate’s impartial administrators abruptly resigned from the board, writing in a letter that they disagreed with Wojcicki concerning the “strategic path for the corporate.” Three new impartial administrators had been appointed to the board in late October.
“Now we have fulfilled our obligations as a public firm and regained compliance with the NASDAQ itemizing requirements by reconstituting our board and executing a reverse inventory cut up,” Wojcicki stated throughout 23andMe’s earnings name Tuesday.
Wojcicki has repeatedly stated she intends to take 23andMe personal, although she did not tackle the plans Tuesday. In a September submitting with the SEC, she stated she wouldn’t take into account third-party takeover proposals, and stated the “finest path ahead” is for her to take the corporate personal.
23andMe declined to remark.
WATCH: The rise and fall of 23andMe
