May 27 (UPI) — Human genetics testing firm 23andMe announced Tuesday it will voluntarily delist from the Nasdaq and deregister with the U.S. Securities and Exchange Commission after filing for Chapter 11 bankruptcy protection earlier this year.
23andMe, known for its at-home DNA testing kits and genetic profiles, said it will file a Form 25 Notification of Delisting with the SEC “on or about June 6,” according to a company statement. Once the Nasdaq delisting becomes effective, the company will file a Form 15 to deregister with the SEC.
“As Nasdaq has not yet made the filing, the company is doing so voluntarily to permit it to file a Form 15 to deregister with the SEC,” the company said Tuesday.
23andMe announced in March that it would seek Chapter 11 proceedings in order to facilitate a court-supervised sale of its assets, as the California-based genetics company struggled financially after announcing it would cut its workforce by 40%.
“After a thorough evaluation of strategic alternatives, we have determined that a court-supervised sale process is the best path forward to maximize the value of the business,” Mark Jensen, chair and member of the Special Committee of the Board of Directors, said in March.
Last week, Regeneron Pharmaceuticals acquired the right to purchase “substantially all” of 23andMe’s assets after winning a bankruptcy auction in a deal worth $256 million. At its peak, the company was valued at around $6 billion. The transaction still needs to be approved by the U.S. Bankruptcy Court for the Eastern District of Missouri, as well as other regulators.
“23andMe is a pioneer in consumer genetics and research, and we are excited for the opportunity to support their important mission and grow their platform and business,” Regeneron senior vice president Aris Baras said in a statement on May 19.
“We assure 23andMe customers that we are committed to protecting the 23andMe dataset with our high standards of data privacy, security and ethical oversight and will advance its full potential to improve human health,” Baras added.
Two years ago, the company disclosed that hackers had stolen ancestry and personal data from 6.9 million 23andMe customers. The leak included DNA data, birthdates, locations and profile photos. It spread to millions of other users through the DNA Relatives feature that provided information on account holders and their relatives.
According to an SEC filing in October 2023, 23andMe predicted a loss of between $1 million and $2 million in “onetime expenses” related to the breach.