By Elsa Ohlen

The biotech company 23andMe has a big mess to clean up after its entire board resigned to protest its CEO's plans to take the genetic-testing company private.

The stock is down more than 63% so far this year, though the shares were up about 6% at 35 cents in early Thursday trading. Penny stocks, which often trade in low volumes, tend to be volatile.

The company went public in 2021 via a merger with a special purpose acquisition company. Shares rose by over 20% in its first day of trading, reflecting market optimism around the company's big plans to commercialize genetic testing and personalized medicine. The stock has lost more than 95% of its value since then, taking its market value from $3.5 billion to $170 million.

In the latest setback for CEO Anne Wojcick, who founded the company in 2006, all seven board members resigned, effective immediately, in a letter published Tuesday.

Wojcick proposed in July to take the company private, which wasn't well received by the other board members. They said in the letter that they were "disappointed with the proposal for multiple reasons," including that it didn't provide a premium to the share price of about 40 cents at the time.

They "differ on the strategic direction for the Company going forward," the letter said, saying Wojcick hadn't presented a "fully financed, fully diligenced, actionable proposal that is in the best interests of the non-affiliated shareholders."

23andMe didn't immediately respond to a request for comment.

23andMe became a household name with its at-home DNA tests that provide individuals with insight into their genetic history. Customers can learn about their genetic risks and how they might affect their health, according to its website.

The company has yet to post a quarterly profit since it went public, according to FactSet. In its latest June quarter, it reported a loss of 14 cents a share. The company has struggled to secure steady revenue because customers only have to take its DNA tests once. It is also facing class-action lawsuits regarding data breaches.

Wojcick said she was "surprised and disappointed" by the decision of the directors to resign, she said in a memo to employees that was published by CNBC.

"I continue to believe that we will be better positioned to achieve our mission and goals outside of the short term pressures of the public markets and that taking 23andMe private will be the best opportunity for long term success," she wrote.

Write to Elsa Ohlen at elsa.ohlen@barrons.com

This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.

(END) Dow Jones Newswires

September 19, 2024 10:43 ET (14:43 GMT)

Copyright (c) 2024 Dow Jones & Company, Inc.