DNA-testing site 23andMe fights for survival

Three years ago, 23andMe was a shining star in the world of technology. The company, which specializes in DNA testing, had a stock price that soared higher than that of Apple. People were excited to send in their saliva samples to learn about their ancestry, family connections, and even their health risks. However, the situation has drastically changed for 23andMe, and now the company is fighting to stay afloat. Its stock price has dropped significantly, and this week it was removed from the stock market. This is particularly concerning because 23andMe holds sensitive information about its customers, including their genetic data. Many are worried about what could happen to this valuable database. When the BBC reached out to 23andMe, the company expressed confidence in its future and emphasized its commitment to protecting customer data and privacy. But how did a company that was once so successful find itself in such a precarious position? Not long ago, 23andMe was in the spotlight for all the right reasons. It attracted a number of high-profile customers, including celebrities like Snoop Dogg, Oprah Winfrey, and Warren Buffet. Millions of users received unexpected and sometimes life-changing results from their DNA tests. Some individuals discovered that their biological parents were not who they believed them to be, while others learned they had genetic predispositions to serious health conditions. At its peak, the company's stock price reached an impressive $321. Fast forward three years, and that price has plummeted to just under $5, leaving the company worth only 2% of its former value. So, what went wrong? According to Professor Dimitris Andriosopoulos, who leads the Responsible Business Unit at Strathclyde University, 23andMe faced two major challenges. First, the company lacked a sustainable business model. Once customers paid for their DNA reports, there was little incentive for them to return for additional services. Second, the plans to utilize an anonymized version of the DNA database for drug research took too long to yield profits, as the drug development process is notoriously lengthy. Professor Andriosopoulos bluntly stated, 'If I had a crystal ball, I’d say they will maybe last for a bit longer. But as it currently is, in my view, 23andMe is highly unlikely to survive. ' The turmoil at 23andMe is also reflected in its leadership. Currently, only CEO and co-founder Anne Wojcicki remains from the original team. There have been rumors that the company may soon either shut down or be sold, but 23andMe has denied these claims. The company stated that Anne Wojcicki intends to take the company private and is not considering any third-party takeover proposals. Nevertheless, speculation continues, with rival company Ancestry calling for US competition regulators to intervene if 23andMe does end up for sale. The situation is particularly concerning due to the sensitive nature of the data that 23andMe possesses. Carissa Veliz, an author and privacy advocate, expressed her worries about the implications of this data being mishandled. She pointed out that when individuals provide their DNA to 23andMe, they are also sharing genetic information about their family members, including parents, siblings, and even distant relatives who did not consent to the testing. David Stillwell, a professor of computational social science at Cambridge Judge Business School, echoed these concerns, emphasizing that DNA data is unique. He explained, 'If your bank account details are hacked, it will be disruptive, but you can get a new bank account. If your (non-identical) sibling has used it, they share 50% of your DNA, so their data can still be used to make health predictions about you. ' In response to these concerns, 23andMe has insisted that such worries are unfounded. The company stated, 'Any company that handles consumer information, including the type of data we collect, there are applicable data protections set out in law required to be followed as part of any future ownership change. ' They also assured that their terms of service and privacy statement would remain in place unless customers agree to new terms. In the UK, there are legal protections under the General Data Protection Regulation (GDPR) that apply regardless of whether the company goes bankrupt or changes ownership. However, experts caution that all companies are vulnerable to hacking. Carissa Veliz remains uneasy about the situation and argues that a more robust approach is necessary to safeguard our most personal information. She stated, 'The terms and conditions of these companies are typically incredibly inclusive; when you give out your personal data to them, you allow them to do pretty much anything they want with it. ' Until we take steps to ban the trade in personal data, we may not be adequately protected.