23andMe to delist from Nasdaq and deregister with SEC

SAN FRANCISCO - 23andMe Holding Co. (OTC: MEHCQ), a prominent player in the human genetics and biotechnology field with annual revenue of $208.78 million, announced today its plan to delist from the Nasdaq stock exchange. According to InvestingPro data, the company’s market capitalization has declined to $83.7 million amid significant financial challenges, with an EBITDA loss of $219.67 million in the last twelve months. The company will file a Form 25 with the Securities and Exchange Commission (SEC) around June 6, 2025, to formally remove its securities from listing and registration on Nasdaq.

This move follows the suspension of trading of 23andMe’s Class A common stock by Nasdaq at the beginning of business on March 31, 2025. Although Nasdaq had informed the company of its intention to file a Form 25, the exchange has not yet done so. Consequently, 23andMe is proceeding with the filing voluntarily, which will also allow it to file a Form 15 to deregister with the SEC. InvestingPro analysis reveals the company has been quickly burning through cash, with negative free cash flow of $155.63 million.

The decision to delist and deregister comes in the wake of the company’s announcement on March 23, 2025, that it and certain subsidiaries had initiated voluntary Chapter 11 bankruptcy proceedings in the U.S. Bankruptcy Court for the Eastern District of Missouri. The completion of the Nasdaq delisting process will enable 23andMe to proceed with the SEC deregistration.

23andMe, known for its direct-to-consumer genetic testing kits, has faced a number of challenges leading up to the bankruptcy proceedings and subsequent delisting announcement. The company has not provided specific details on the reasons behind the financial difficulties leading to these actions.

The company’s press release includes forward-looking statements regarding its expectations and plans, which are subject to risks and uncertainties. These include, but are not limited to, the company’s ability to obtain court approval for its reorganization plans, the impact of the bankruptcy proceedings on its operations, and the potential outcomes of these proceedings.

As the situation develops, 23andMe has not offered further comment on the potential impact on its customers or the future direction of the company post-bankruptcy proceedings. The stock currently trades at $3.15, showing high price volatility according to InvestingPro analysis, which offers 11 additional key insights about the company’s financial health and market position through its comprehensive Pro Research Report, available to subscribers. This news is based on a press release statement from 23andMe, and additional information will likely become available as the company progresses through the legal and regulatory steps of its restructuring process.

In other recent news, 23andMe Holding Co. has agreed to sell its assets to Regeneron Pharmaceuticals for $256 million, excluding its Lemonaid Health subsidiary. This transaction, part of 23andMe’s Chapter 11 bankruptcy proceedings, awaits U.S. Bankruptcy Court approval and is expected to conclude in the third quarter of 2025. The company has also introduced a new genetic report for 23andMe+ Premium members, assessing the likelihood of elevated homocysteine levels, which could be a risk factor for certain health conditions. This report is part of 23andMe’s efforts to provide personalized health strategies through genetic and laboratory data.

Additionally, the New York and California attorneys general have urged 23andMe customers to delete their accounts following the company’s bankruptcy filing, emphasizing data protection. Meanwhile, the company’s board has rejected a buyout bid from CEO Anne Wojcicki, who offered to purchase all outstanding shares not under her control. The board continues to explore strategic alternatives to enhance shareholder value. These developments reflect ongoing challenges and strategic shifts for 23andMe in the current market landscape.

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