23andMe’s struggles are a sign that direct-to-consumer DNA testing needs stronger oversight

23andMe, a major company providing direct-to-consumer genetic testing, has been struggling financially since late 2023. In September 2024, the company’s stock hit a rock-bottom of US$0.30, down 96 per cent from its peak share price of US$17.65 in 2021.

Since its founding in 2006, 23andMe has sold more than 12 million testing kits globally and attracted high-profile customers, including Snoop Dogg, Oprah Winfrey and Warren Buffett. While some companies like Ancestry and myHeritage just focus on tracing the ancestry and ethnicity of their customers, 23andMe also provides health-related testing and reports.

In September 2024, seven of the company’s eight board members resigned, stating it was “clear that we differ on the strategic direction for the company going forward,” leaving CEO Anne Wojcicki its sole board member. Two months later, in November, 23andMe announced plans to cut 40 per cent of its workforce — approximately 200 jobs — and discontinue its therapeutics division to stay afloat.

These developments raise questions about how 23andMe’s future might affect customers’ genetic information, raising age-old concerns about the need for stricter...