Spit Happens: 23andMe is Bankrupt — Secure Your DNA Data NOW Already
Personal genomics firm tells customers your data is safe—but few will trust the loss-making biotech pioneer.
CEO Anne Wojcicki has quit 23andMe. The board wouldn’t let her take it private. And now the company is heading into bankruptcy protection, raising concerns about privacy, potential government access to the data and the company’s future business practices under new owners.
Should you be worried about your genetics ending up in the wrong hands? In today’s SB Blogwatch, we are.
Your humble blogwatcher curated these bloggy bits for your entertainment. Not to mention: Win95 surrealism.
Double Hell-ix
What’s the craic? Harry Suhartono reports: 23andMe Starts Chapter 11 Process, Co-Founder Steps Down as CEO
“Wojcicki is resigning”
The Chapter 11 plan is the latest chapter in the saga of the personalized DNA testing company that was valued at $3.5 billion when it went public in 2021. Co-founder Anne Wojcicki’s efforts to take the struggling company private were rejected by a committee earlier this month.
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Wojcicki is resigning from her role as the chief executive officer, but will continue to serve on the board, the statement said. Joe Selsavage has been appointed as interim CEO.
What can we do? Geoffrey A. Fowler has urgent advice: Delete your DNA from 23andMe right now
“Permanently Delete Data”
If you’re one of the 15 million people who shared your DNA with 23andMe, it’s time to delete your data. … Unless you take action, there is a risk your genetic information could end up in someone else’s hands — and used in ways you had never considered.
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How to delete genetic data from 23andMe: …
— Go to your profile, then tap Settings
— Scroll to the “23andMe Data” section … and click View
— If you want to download your data, select what you want
— Scroll to the “Delete Data” section and click Permanently Delete Data …
— You’ll receive an email from 23andMe; … click the link in the email to confirm
Context? Tracy Brown Hamilton has some: 23andMe bankruptcy update
“Valuation dropping dramatically”
The bankruptcy filing punctuates a stunning downfall for what was once one of Silicon Valley’s buzziest companies. It follows a long series of setbacks for 23andMe, including mass layoffs and restructuring efforts.
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Last year, 23andMe reduced its workforce by nearly 40%, a move that was part of an effort to cut operating costs and pivot the company’s focus. 23andMe has also faced mounting financial losses, with its valuation dropping dramatically since its 2021 IPO.
How did it fail? Rob Beschizza translates for us: 23andMe files for bankruptcy
The company “failed to find a basis for recurring income,” which is the business beat way of saying they saturated the market and had nothing else to sell. With debts and liabilities, the company … appears to be worthless. The good news, perhaps, is that this suggests there’s no unexposed private data on hand with any potential value.
Horse’s mouth? 23andMe board director Mark Jensen and friends:
23andMe has made the decision to facilitate a sale of its business by initiating voluntary Chapter 11 proceedings. … Your data remains protected. … The filing does not change how we store, manage, or protect customer data.
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Through this process, we will seek to find a partner who shares our commitment to customer data privacy and allows our mission of helping people access, understand and benefit from the human genome to live on. … Our users’ privacy and data are important considerations in any transaction, and we remain committed to our users’ privacy and to being transparent with our customers about how their data is managed.
What do industry insiders think? Here’s pmags:
I work in population genomics. … For nearly 20 years I’ve been telling my extended family not to participate in any large scale genotyping with 23andMe or similar, … anticipating that something like the current scenario would likely play out.
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I never personally understood that or why someone would want to turn over so much data to a commercial entity. This is not to say that large scale sequence information is not appropriate for some people. But if that’s something you need, … make sure you own your own data.
True, dat. And Reginald O. lays it on the line:
Just don’t! Don’t give up your DNA to anyone without a fight. It will never, ever be private and will be used against you and your family sooner than later.
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Despite what they might say, they are not going to keep your data safe, secure and private whatsoever. … Governments want the data as much or more than the corporations. They aren’t going to protect us, no matter what holy flim flam Swiss cheese law they might pass.
Wait. Governments? What you say? gillbates set up us the bomb: [You’re fired—Ed.]
All your DNA are belong to us. Now all that data is up for sale, … I believe the federal government can afford to buy them.
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You don’t need a subpoena if you own the data. There’s no judicial review of government databases.
What’s the ex-CEO’s angle? Runamok isn’t impressed:
As a geneticist and someone who met Anne Wojcicki a few times, I was not impressed. She was smug and arrogant, far more than someone with very little training in the field should be. … Their standard DNA analysis tech was obsolete. … The genetic models they applied to complex disease were never proven or reliable.
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23andMe (and … Ancestry) do not perform DNA sequencing. … They used a low density SNP array for genealogy. The only truly useful information they ever could have had would have been whole genome sequence combined with detailed (i.e., quantitative) medical histories, [which] would have been vastly more expensive.
Meanwhile, what was the real reason for the Chapter 11? cloudbonsai thinks they know:
23andMe has been in a deadlock for a while. The CEO is effectively the control owner of the company, having 49% of the voting rights. She has been trying to take the company private. … Meanwhile 23andMe was losing $50M every quarter. So … the board chose to enter into the bankruptcy process.
And Finally:
Hat tip: FeralCatMan
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