In a stunning development, all seven members of the board of directors at 23andMe, the renowned DNA-testing company, resigned on Tuesday, adding to the mounting challenges faced by the embattled company. The resignation is seen as a major blow to CEO Anne Wojcicki's plans to take 23andMe private. Since its public debut in 2021, the company has struggled to turn a profit, and its stock value has plummeted.

The once-promising company, known for its mail-order DNA testing kits, has been grappling with financial difficulties for some time. Despite going public through a merger with a special purpose acquisition company (SPAC), 23andMe has never managed to achieve profitability. Its initial public offering (IPO) price of $10 per share has now dropped to an abysmal $0.30, hitting rock bottom after the board's mass resignation. Although the stock has recovered slightly to $0.36, the future remains uncertain.

The board members expressed their frustrations in a letter addressed to Wojcicki, citing the lack of a fully financed and actionable proposal that would serve the best interests of the company's non-affiliated shareholders. They highlighted their unwavering support for 23andMe's mission and the value of its personalized health and wellness offerings. However, significant differences in the strategic direction for the company led to their decision to resign. With Wojcicki controlling 49% of the company's votes, she now remains as the sole board member.

In response to the resignations, Wojcicki expressed surprise and disappointment in an internal memo circulated within the company. Despite the pressure she faces, she remains optimistic about privatizing 23andMe, stating that it is still the best plan for the company's future. She intends to swiftly find new independent directors who share her vision and support the privatization strategy. More updates on this matter are expected on Thursday.

The challenges faced by 23andMe this year have been significant. The sales of DNA testing kits have declined, and the company's research collaboration with GlaxoSmithKline concluded in the previous year. Furthermore, a recent data breach affected nearly 7 million customers, resulting in multiple lawsuits and a costly $30 million settlement. These setbacks have considerably diminished the company's market capitalization, once valued at $3.5 billion, which now hovers below $200 million.

Nonetheless, Wojcicki remains optimistic about the company's drug development and genetic sequencing efforts, expecting them to yield fruitful results in the long run. She believes that the company's vision and direction are solid, even though the path to achieving that vision may be tumultuous. Unfortunately, the resignations of the entire board of directors indicate a lack of consensus on the way forward for 23andMe.

With the departure of all board members, the future of 23andMe hangs in the balance. The CEO's push for privatization faces increasing scrutiny, as the company grapples with financial struggles, diminishing sales, and legal hurdles. As Wojcicki seeks to assemble a new board that supports her vision, the fate of 23andMe remains uncertain.