23andMe is considering splitting up its business into two entities—one focused on DNA-testing and the other on drug development—after the stock slid by as much as 10% after second quarter 2024 earnings. The proposed strategic shift arrives at a pivotal moment for 23andMe, a company that once boasted a market cap exceeding $6 billion and now trades for pennies as it faces a Nasdaq delisting.

The problem runs deeper than just missing quarterly forecasts. The split is being seen as a last-ditch attempt to regain stability in a market that has quickly soured on its business model. The rapid decline in share price highlights the volatile nature of the tech and biotech sectors as well as the critical need for agility in strategic planning. All told, there’s been a significant loss of trust in the company's leadership team triggering a massive crisis of confidence.

Strong brands are business drivers and can move the needle on real growth. The uplift can be seen in a number of ways, namely premium pricing, higher margins, market cap, stock performance and improved financial ratios. Yet most management teams still view branding as an image exercise and more often than not, given low organizational priority.