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More than 15 million users entrusted the US company 23andme with their DNA data for analysis. Now 23andme has filed for insolvency – and the database could have a new owner.
The insolvency of the US genetic testing company 23andme raises a very special data protection issue: Who gets the very personal information of its more than 15 million users? California Attorney General Rob Bonta reminded customers in the face of uncertainty that they could request the deletion of their data.
After filing for insolvency on Monday night, co-founder and previous CEO Anne Wojcicki confirmed that she wanted to buy the company and continue its operations. However, it is unclear whether she will win the bid. She resigned from her position as CEO in order to have a free hand. Two takeover bids from her had already been rejected by the company’s board of directors.
The insolvency application stated that this step was intended to maximize the value of the company. Meanwhile, operations will continue – and all rules regarding user data will be followed.
Pioneer in consumer genetic testing
23andme was a pioneer of genetic testing for consumers: customers can send in DNA samples and receive an assessment on hereditary diseases, among other things. One problem with the business model was that many people only used the service once. Attempts by 23andme to build up a subscription business or enter into the development of medicines were not successful.
Wojcicki was married to Google co-founder Sergey Brin in the early years of 23andme. He himself found out through a DNA test that he had a genetic mutation that meant an increased risk of Parkinson’s disease. Brin and Wojcicki divorced in 2015.
dpa
