23andMe Announces Business Restructuring to Streamline Operations, Reduce Costs and Position Company for the Future
23andMe announced a significant business restructuring, including the discontinuation of its therapeutics division and a 40% workforce reduction affecting over 200 employees. The company expects to achieve annualized cost savings exceeding $35 million, while incurring up to $12 million in one-time restructuring costs. The company will explore strategic alternatives for its therapeutic programs, including potential licensing agreements and asset sales. The restructuring aims to focus on the core consumer business and research partnerships. The company's therapeutic portfolio includes 23ME-00610 (Phase 1/2a) and 23ME-01473 (Phase 1), targeting cancer and immunology treatments.
23andMe ha annunciato una significativa ristrutturazione aziendale, che include la chiusura della sua divisione terapeutica e una riduzione del 40% della forza lavoro che colpirà oltre 200 dipendenti. L'azienda prevede di ottenere risparmi annuali superiori a 35 milioni di dollari, affrontando però spese fino a 12 milioni di dollari per i costi di ristrutturazione una tantum. L'azienda esplorerà alternative strategiche per i suoi programmi terapeutici, inclusi potenziali accordi di licenza e vendite di beni. L'obiettivo della ristrutturazione è concentrarsi sul business principale dei consumatori e su partnership di ricerca. Il portafoglio terapeutico dell'azienda comprende 23ME-00610 (Fase 1/2a) e 23ME-01473 (Fase 1), mirati ai trattamenti per il cancro e l'immunologia.
23andMe anunció una reestructuración empresarial significativa, que incluye la discontinuación de su división de terapéuticos y una reducción del 40% en la fuerza laboral, afectando a más de 200 empleados. La compañía espera lograr ahorros anuales de más de 35 millones de dólares, aunque incurrirá en hasta 12 millones de dólares en costos de reestructuración únicos. La empresa explorará alternativas estratégicas para sus programas terapéuticos, incluidos posibles acuerdos de licencia y ventas de activos. La reestructuración tiene como objetivo centrarse en el negocio principal de consumo y en asociaciones de investigación. El portafolio terapéutico de la compañía incluye 23ME-00610 (Fase 1/2a) y 23ME-01473 (Fase 1), que se dirigen a tratamientos para el cáncer y la inmunología.
23andMe는 치료 부문의 종료와 200명 이상의 직원에게 영향을 미치는 40%의 인력 감축을 포함한 중대한 사업 구조 조정을 발표했습니다. 회사는 3천5백만 달러를 초과하는 연간 비용 절감을 달성할 것으로 예상하고 있으며, 동시에 1천2백만 달러의 일회성 구조 조정 비용이 발생할 수 있습니다. 회사는 잠재적인 라이선스 계약 및 자산 매각을 포함하여 치료 프로그램에 대한 전략적 대안을 모색할 것입니다. 이번 구조 조정의 목표는 핵심 소비자 사업 및 연구 파트너십에 집중하는 것입니다. 회사의 치료 포트폴리오는 암 및 면역학 치료를 목표로 하는 23ME-00610(1/2a상) 및 23ME-01473(1상)을 포함합니다.
23andMe a annoncé une restructuration importante de l'entreprise, y compris l'arrêt de sa division thérapeutique et une réduction de 40 % de ses effectifs, touchant plus de 200 employés. La société prévoit de réaliser des économies annuelles dépassant 35 millions de dollars, tout en entraînant jusqu'à 12 millions de dollars de coûts de restructuration uniques. L'entreprise explorera des alternatives stratégiques pour ses programmes thérapeutiques, y compris des accords de licence potentiels et des ventes d'actifs. La restructuration vise à se concentrer sur l'activité principale des consommateurs et les partenariats de recherche. Le portefeuille thérapeutique de l'entreprise comprend 23ME-00610 (Phase 1/2a) et 23ME-01473 (Phase 1), ciblant les traitements contre le cancer et l'immunologie.
23andMe hat eine bedeutende Unternehmensumstrukturierung angekündigt, die die Schließung seiner therapeutischen Abteilung und eine Reduzierung der Belegschaft um 40 % umfasst, was mehr als 200 Mitarbeiter betrifft. Das Unternehmen erwartet jährliche Kosteneinsparungen von über 35 Millionen Dollar, während bis zu 12 Millionen Dollar an einmaligen Umstrukturierungskosten anfallen. Das Unternehmen wird strategische Alternativen für seine therapeutischen Programme prüfen, einschließlich möglicher Lizenzvereinbarungen und Asset-Verkäufen. Ziel der Umstrukturierung ist es, sich auf das Kerngeschäft mit Verbrauchern und Forschungskooperationen zu konzentrieren. Das therapeutische Portfolio des Unternehmens umfasst 23ME-00610 (Phase 1/2a) und 23ME-01473 (Phase 1), die auf Krebs- und Immuntherapien abzielen.
- Expected annualized cost savings of over $35 million
- Streamlining operations to focus on core consumer business
- Potential value creation through strategic alternatives for therapeutic assets
- 40% workforce reduction affecting over 200 employees
- Discontinuation of entire therapeutics division
- Up to $12 million in restructuring costs
- Wind-down of ongoing clinical trials
Insights
This major restructuring signals severe financial distress at 23andMe. The
The termination of 23andMe's therapeutic programs marks a significant setback for their innovative approach of leveraging genetic data for drug development. Their lead candidates showed promise - 23ME-00610 demonstrated early efficacy in solid tumors through CD200R1 checkpoint inhibition, while 23ME-01473's novel NK-cell activation mechanism had potential. However, the high costs and extended timelines of drug development proved unsustainable given their financial constraints. This exit may create opportunities for larger pharma companies to acquire these assets at attractive valuations. The restructuring effectively transforms 23andMe from a high-risk/high-reward biotech play into a more stable but lower-growth consumer genetics company.
Reduces workforce by roughly
Discontinues development of therapeutics division and commences strategic alternatives process for all in-house therapeutic programs
SUNNYVALE, Calif., Nov. 11, 2024 (GLOBE NEWSWIRE) -- 23andMe Holding Co. (Nasdaq: ME) (the “Company” or “23andMe”), a leading human genetics and preventive health company, today announced a business restructuring to streamline operations and reduce costs. In addition, 23andMe is discontinuing further development of all its therapeutics programs, while evaluating strategic alternatives for its clinical and preclinical assets.
The Company is reducing its overall headcount by over 200 employees, representing approximately
“We are taking these difficult but necessary actions as we restructure 23andMe and focus on the long-term success of our core consumer business and research partnerships,” said Anne Wojcicki, 23andMe’s CEO, Co-Founder, and Chair of the Board. “I want to thank our team for their hard work and dedication to our mission. We are fully committed to supporting the employees impacted by this transition.”
Strategic Alternatives Process for Therapeutics Programs
In parallel with the discontinuation of its therapeutics division, the Company is actively exploring all strategic options for a limited time to maximize the value of its therapeutics programs, including licensing agreements, asset sales or other transactions. 23andMe intends to wind-down its ongoing clinical trials as quickly as practical, while the strategic alternatives process is ongoing.
“We continue to believe in the promise shown by our clinical and preclinical stage pipeline and will continue to pursue strategic opportunities to continue their development. We remain deeply grateful to the patients, investigators and study staff for their participation in our clinical trials,” said Wojcicki.
The Company’s therapeutic programs include 23ME-00610 (a Phase 1/2a therapeutic antibody that is designed to restore the immune system’s ability to kill cancer cells by blocking the immune checkpoint CD200R1), 23ME-01473 (a Phase 1 therapeutic antibody that targets ULBP6, which can be expressed and secreted by tumor cells to suppress immune activity), and other preclinical immunology and inflammation programs. 23ME-00610 has demonstrated early monotherapy responses, potential patient selection biomarkers, and combination potential for patients across multiple difficult-to-treat solid tumors and 23ME-01473 has yielded promising preclinical data with a novel NK-cell-activating mechanism.
There can be no assurance that the strategic alternatives process for the therapeutics assets will result in any course of action and there is no definitive timeline for completion.
About 23ME-00610 (Phase 1/2a)
23ME-00610 is a monoclonal antibody that binds to CD200R1 to prevent the interaction of CD200R1 with CD200. Using the world’s largest proprietary database of health and genetic information, 23andMe identified genetic variants of CD200R1, CD200, and DOK2, the downstream signaling protein, associated with higher risks of immune disease and lower risks of cancer, pinpointing CD200R1 as a promising immuno-oncology target.
23ME-00610 has demonstrated preliminary evidence of clinical benefit as monotherapy, including partial responses by RECIST criteria in patients with neuroendocrine tumors and clear-cell renal-cell carcinomas in the Phase 1/2a clinical trial. Additional preclinical data and recent literature validate the CD200-CD200R1 pathway as a potential oncology target for reversing immune tolerance, as a monotherapy or in combination (e.g., with anti-PD-1, anti-VEGF, CAR-T cell therapies). Higher tumor expression of CD200 and human genetics correlated with increased clinical benefit, suggesting potential value as patient selection biomarkers.
23ME-00610 has shown favorable pharmacokinetics (PK) for dosing once every three weeks, expected on-target pharmacologic activity, and a promising safety and tolerability profile suggesting amenability to combination therapies.
About 23ME-01473 (Phase 1)
23ME-01473 targets ULBP6 to restore anti-tumor immunity through NK and T cells. ULBPs are stress-induced ligands found on the surface of cancer cells that bind to their receptor, NKG2D, on NK and T cells. Cancers escape immune cell recognition by shedding decoy ULBP ligands from their cell surface. ULBP6 has the highest binding affinity to NKG2D, potentially 30 times higher than MICA.
Blocking the binding of soluble ULBP6 to NKG2D through ‘1473 may restore immune cell recognition and killing of cancer cells. ‘1473 is also Fc-effector enhanced, which further enables NK cells to induce cell death of ULBP6-expressing cancer cells.
ULBP6 was identified as a potential cancer drug target using the 23andMe immuno-oncology (I/O) genetic signature, an approach developed by 23andMe to identify evidence for genetic variants that increase immune function while decreasing cancer risk. Using genetic data, 23andMe can identify immune-related genes that are expected to have an impact on cancer biology. Specifically, germline genetics can reveal which of the immune-related genes harbor genetic variants that also alter an individual's predisposition for developing cancer.
About 23andMe
23andMe is a genetics-led consumer healthcare company empowering a healthier future. For more information, please visit www.23andMe.com.
Contact
press@23andme.com
investors@23andme.com
bd@23andme.com
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact, included or incorporated in this press release are forward-looking statements. The words “believes,” “anticipates,” “estimates,” “plans,” “expects,” “intends,” “may,” “could,” “should,” “potential,” “likely,” “projects,” “predicts,” “continue,” “will,” “schedule,” and “would” or, in each case, their negative or other variations or comparable terminology, are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. These forward-looking statements are predictions based on 23andMe’s current expectations and projections about future events and various assumptions. 23andMe cannot guarantee that it will actually achieve the plans, intentions, or expectations disclosed in its forward-looking statements and you should not place undue reliance on 23andMe’s forward-looking statements. These forward-looking statements involve a number of risks, uncertainties (many of which are beyond the control of 23andMe), or other assumptions that may cause actual results or performance to differ materially from those expressed or implied by these forward-looking statements. The forward-looking statements contained herein are also subject generally to other risks and uncertainties that are described from time to time in the Company’s filings with the Securities and Exchange Commission, including under Item 1A, “Risk Factors” in the Company’s most recent Annual Report on Form 10-K, as filed with the Securities and Exchange Commission, and as revised and updated by the Company’s Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. The statements made herein are made as of the date of this press release and, except as may be required by law, the Company undertakes no obligation to update them, whether as a result of new information, developments, or otherwise.
FAQ
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