DNA-testing pioneer 23andMe, once hailed as a leader in personal genomics with a share price outshining even Apple, now finds itself struggling for survival. The company, famous for its detailed ancestry and health reports, faces severe financial and operational challenges, barely escaping delisting this week as its stock price has plummeted from $321 to under $5—an alarming 98% decline.

What Went Wrong?

Experts, including Professor Dimitris Andriosopoulos from Strathclyde University, point to two main issues: a limited repeat-customer business model and delays in monetizing its anonymized DNA database for drug research. The latter, while promising, was hindered by the inherently slow process of pharmaceutical development. “If I had a crystal ball, I’d say they will maybe last for a bit longer,” Andriosopoulos said, doubting the company’s long-term survival.

This financial turmoil is mirrored by significant leadership changes. Over the summer, the board resigned, leaving only co-founder and CEO Anne Wojcicki, known for her connections to tech moguls like her former husband, Google co-founder Sergei Brin. While Wojcicki has expressed intent to take 23andMe private and denied sale rumors, speculation persists. Rivals, such as Ancestry, have called for U.S. competition regulators to step in should the company go on the market.

The Privacy Dilemma

The potential collapse of 23andMe raises critical questions about the fate of its vast trove of genetic data. “It’s worrying because of the sensitivity of the data,” said Carissa Veliz, author of *Privacy is Power*. She highlights a key concern: the ripple effect on genetic data privacy. Even if one individual submits their DNA, it indirectly shares genetic insights about their relatives who may not have consented.

Professor David Stillwell of Cambridge Judge Business School elaborates: “If your sibling has used it, they share 50% of your DNA, so their data can still be used to make health predictions about you.”

Despite 23andMe’s assurances that strict data protection laws, including GDPR in the UK, would safeguard customer data through any ownership changes, skepticism remains. A cyberattack 12 months ago demonstrated that no system is impervious to breaches, amplifying concerns about data misuse or unauthorized access in the future.

Veliz calls for more stringent measures: “Until we ban the trade in personal data, we are not well protected enough.” As 23andMe navigates financial instability, the balance between business viability and protecting the privacy of millions remains at the forefront of its—and its customers’—challenges.