23andMe reported a decline in revenue in its most up-to-date quarter on Tuesday, a day after the corporate said it will cut 40% of its workforce and shut its therapeutics business amid a crisis Corporate restructuring plan.
The troubled genetics company reported revenue of $44.1 million in its fiscal second quarter, compared with $50 million in the identical period last 12 months. 23andMe's net loss narrowed to $59.1 million, or $2.32 per share, in comparison with $75.27 million, or $3.17 per share, a 12 months ago.
23andMe said Monday that it will cut greater than 200 jobs, halt all of its therapeutic programs and terminate its ongoing clinical trials “as quickly as possible.” It is exploring strategic options akin to asset sales and licensing agreements to “maximize the value” of the therapeutic programs, the press release said.
“We are taking these difficult but necessary actions as we restructure 23andMe and focus on the long-term success of our core consumer and research partnerships businesses,” Anne Wojcicki, CEO of 23andMe, said in Monday’s press release. “I would like to thank our team for their hard work and commitment to our mission. We are fully committed to supporting employees affected by this transition.”
The company said Tuesday it could look to boost additional capital.
Shares of 23andMe closed up 2% on Tuesday. They have slumped about 75% this 12 months after losing greater than half their value in 2023, pushing the corporate's market cap to $100 million.
Wojcicki, co-founder of 23andMe in 2006, has worked to maintain the corporate afloat after it was at risk of being delisted from Nasdaq. Shares hovered below $1 until 23andMe announced a 1-for-20 ratio reverse stock split in October.
In September, all seven of the corporate's independent directors suddenly resigned from the board, writing in a letter that they disagreed with Wojcicki over the “strategic direction of the company.” At the tip of October, three recent independent directors were appointed to the board.
“We have met our obligations as a publicly traded company and regained compliance with NASDAQ listing standards by reconstituting our board of directors and executing a reverse stock split,” Wojcicki said during 23andMe's conference call on Tuesday.
Wojcicki has repeatedly said she intends to maintain 23andMe private, but didn’t comment on the plans Tuesday. In one Submission in September She said she wouldn’t consider third-party takeover proposals and said the “best path forward” for her was to take the corporate private.
23andMe declined to comment.
REGARD: The rise and fall of 23andMe
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