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 would reduce 40% of its workforce and shutter its therapeutics enterprise as a part of a enterprise restructuring plan.
The embattled 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 web 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.
23andMe stated Monday that it is eliminating greater than 200 jobs, discontinuing all its therapeutics packages and winding down its ongoing medical trials “as rapidly as sensible.” It is evaluating strategic choices resembling asset gross sales and licensing agreements to “maximize the worth” of the therapeutic packages, the discharge stated.
“We’re taking these troublesome however needed 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, stated within the launch Monday. “I wish to thank our staff for his or her laborious work and dedication to our mission. We’re totally dedicated to supporting the staff impacted by this transition.”
The corporate stated Tuesday that it is trying to doubtlessly elevate 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 danger of being delisted from the Nasdaq. Shares had 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 had been appointed to the board in late October.
“We’ve 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 stated throughout 23andMe’s earnings name Tuesday.
Wojcicki has repeatedly stated she intends to take 23andMe personal, although she did not deal with the plans Tuesday. In a September submitting with the SEC, she stated she wouldn’t contemplate third-party takeover proposals, and stated the “greatest path ahead” is for her to take the corporate personal.
23andMe declined to remark.
WATCH: The rise and fall of 23andMe
