Nucleus Genomics, a relatively obscure genomics company, has announced its interest in acquiring 23andMe, following a challenging week for the genetic-testing pioneer.
Kian Sadeghi, founder of New York-based Nucleus, revealed in a Substack post on Friday that the company is “considering the possibility of making a public offer” for 23andMe, with conditions related to financing and successful negotiations. This comes after the resignation of the entire 23andMe board earlier in the week, leaving co-founder Anne Wojcicki as the sole board member. Wojcicki has recently indicated she is contemplating taking the company private, as its stock continues to trade at a precariously low level.
Founded in 2020, Nucleus markets itself as a superior option to existing DNA testing companies, claiming to sequence 1,000 times more DNA than 23andMe while offering stricter privacy controls. Sadeghi expressed optimism about Nucleus’ future in the at-home DNA testing market, positioning the company’s potential acquisition of 23andMe as a disruptive opportunity, akin to the decline of companies like Blackberry and Blockbuster.
Despite Nucleus’ vision, questions remain about how the company will secure the necessary financing for such an acquisition. Nucleus has only raised $17.5 million in venture funding to date, with notable investors like Peter Thiel’s Founder’s Fund and Alexis Ohanian’s Seven Seven Six.
Sadeghi has invited potential partners to contact him via direct message on X, hinting that Nucleus may need additional financial backing to execute the acquisition. Meanwhile, 23andMe, founded in 2006, went public through a SPAC merger in 2021 and has since expanded into drug discovery. The company has faced declining fortunes recently, with its stock hovering around 34 cents, raising concerns about its future on the Nasdaq.
Featured Image courtesy of Yuichiro Chino/Getty Images
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