Anne Wojcicki's Nonprofit to Acquire 23andMe

23andMe to be Acquired by Nonprofit Led by Co-founder

Facing significant challenges, genetic testing company 23andMe has announced a definitive agreement for its sale. The acquiring entity is a nonprofit organization spearheaded by the company’s co-founder and previous CEO, Anne Wojcicki.

Recent Challenges and Bankruptcy Filing

The announcement follows a substantial cyberattack experienced in 2023, alongside a subsequent legal settlement. As a result of these events, 23andMe initiated bankruptcy proceedings in March. Wojcicki stepped down from her position to pursue an independent bid for the company’s acquisition.

Initially, pharmaceutical firm Regeneron emerged as the prospective buyer, submitting a bid valued at $256 million.

TTAM Research Institute's Successful Bid

According to reports from The Wall Street Journal, Wojcicki’s nonprofit, TTAM Research Institute, disrupted the process by presenting an unsolicited offer earlier this month. Regeneron ultimately chose not to counter TTAM’s higher bid of $305 million.

Commitment to Customer Privacy

TTAM (representing Twenty-Three And Me) stated that customers will receive notification of the acquisition at least two business days prior to its completion. The nonprofit has pledged to uphold 23andMe’s existing privacy policies.

These policies ensure customers retain the ability to delete their data and withdraw from research participation. Furthermore, TTAM intends to establish a consumer privacy advisory board within 90 days of the deal’s finalization.

Wojcicki's Vision

“I am thrilled that TTAM Research Institute will be able to continue the mission of 23andMe,” Wojcicki expressed on LinkedIn. “We believe it is critical that individuals are empowered to have choice and transparency with respect to their genetic data and have the opportunity to continue to learn about their ancestry and health risks as they wish.”

Remaining Hurdles and Legal Objections

The acquisition is still subject to approval from the bankruptcy court and faces potential legal obstacles. A coalition of 28 state attorneys general, led by New York’s Letitia James, has filed a lawsuit contesting the sale of the company’s assets.

James asserted, “23andMe cannot auction millions of people’s personal genetic information without their consent.”

Concerns Regarding Data Privacy

A court-appointed privacy ombudsman has also raised concerns, questioning whether 23andMe’s current privacy policies permit the sale of its genetic data, as reported by the WSJ.

Regaining consumer confidence remains a challenge. Joseph Selsavage, 23andMe’s interim CEO, recently informed a House Oversight Committee that 15% of customers have requested data deletion since the bankruptcy filing.