Consumer genetics company 23andMe has announced significant restructuring, including the closure of its therapeutics development division and a substantial layoff of more than 200 employees, or approximately 40% of its workforce. The company is redirecting its focus to its core DNA and ancestry testing services, telehealth platforms, and research partnerships with pharmaceutical companies.
The decision to exit its in-house cancer drug development efforts marks a shift for 23andMe, which initially ventured into drug discovery using its extensive database of genetic information. The company’s therapeutic division had been exploring DNA-based immuno-oncology therapies, including two early-stage candidates, 23ME-00610 and 23ME-01473, designed to target tumor cells by activating the immune system. CEO Anne Wojcicki stated that while the company remains optimistic about the potential of these therapies, it will seek strategic buyers to continue the clinical development of its immuno-oncology pipeline.
The company has been winding down its active trials, including the phase 1/2a study of 23ME-00610, which targets neuroendocrine cancers, kidney cancer, lung cancer, and other solid tumors. A second candidate, 23ME-01473, is being evaluated in a phase 1 trial for advanced solid tumors, specifically targeting ULBP6 to counteract immune suppression by tumor cells. Both programs, showcased at the European Society of Medical Oncology Congress, showed early-stage promise, with 23ME-00610 yielding partial response in renal cell carcinoma, and 23ME-01473 displaying tumor growth inhibition in non-small cell lung cancer mouse models.
The layoffs and restructuring aim to save the company over $35 million annually after an estimated one-time cost of $12 million. This decision follows a period of financial strain for 23andMe, including a recent 1-for-20 reverse stock split to meet Nasdaq’s listing requirements. In recent months, several independent directors, including Roelof Botha and Neal Mohan, resigned from the board, further highlighting the company’s efforts to adapt its strategic direction amidst market challenges.
