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 mentioned 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 mentioned Monday that it is eliminating greater than 200 jobs, discontinuing all its therapeutics applications and winding down its ongoing medical trials “as shortly as sensible.” It is evaluating strategic choices comparable to asset gross sales and licensing agreements to “maximize the worth” of the therapeutic applications, the discharge mentioned.
“We’re taking these troublesome however essential actions as we restructure 23andMe and give attention to the long-term success of our core client enterprise and analysis partnerships,” 23andMe CEO Anne Wojcicki, mentioned within the launch Monday. “I need to thank our crew for his or her laborious work and dedication to our mission. We’re absolutely dedicated to supporting the workers impacted by this transition.”
The corporate mentioned Tuesday that it is seeking to probably elevate extra capital.
Shares of 23andMe have 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 have been hovering under $1 till 23andMe introduced a 1-for-20 reverse inventory break up in October.
In September, all seven of the corporate’s unbiased administrators abruptly resigned from the board, writing in a letter that they disagreed with Wojcicki in regards to the “strategic route for the corporate.” Three new unbiased administrators have 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 break up,” Wojcicki mentioned throughout 23andMe’s earnings name Tuesday.
Wojcicki has repeatedly mentioned she intends to take 23andMe non-public, although she did not tackle the plans Tuesday. In a September submitting with the SEC, she mentioned she wouldn’t contemplate third-party takeover proposals, and mentioned the “greatest path ahead” is for her to take the corporate non-public.
23andMe declined to remark.
WATCH: The rise and fall of 23andMe
