Regeneron to Acquire 23andMe for $256 Million

Regeneron to Acquire 23andMe Following Bankruptcy Auction

Regeneron, a leading pharmaceutical company, has announced its intention to purchase genetic testing firm 23andMe for $256 million. This acquisition follows a bankruptcy auction process concluded on Monday.

Acquisition Details and Data Access

The agreement will see Regeneron gaining control of 23andMe’s genomics service, alongside access to its extensive database containing personal and genetic information from 15 million customers. The pharmaceutical company intends to leverage this data to accelerate and refine its drug discovery processes.

Regeneron emphasized its commitment to responsible data handling, stating it will “prioritize the privacy, security, and ethical use of 23andMe’s customer data.”

23andMe's Recent Challenges

23andMe filed for bankruptcy protection in March, triggered by a significant data breach that compromised the private and genetic data of approximately 7 million customers throughout 2023.

Concurrent with the data security incident, the company experienced a sharp decline in its stock value, coinciding with reduced consumer demand for its direct-to-consumer DNA testing kits. This led to the resignation of founder and CEO, Anne Wojcicki, following the company’s financial difficulties.

Concerns Regarding Customer Data

Following the bankruptcy filing, a federal bankruptcy court was tasked with overseeing the sale of 23andMe’s assets. This process raised concerns about the potential for customer data to be acquired by entities with questionable intentions or from nations considered adversarial.

Regeneron has assured stakeholders that it will “ensure compliance” with existing 23andMe privacy policies and all applicable data protection laws as the acquiring party.

Next Steps and Excluded Assets

The proposed acquisition by Regeneron is scheduled for review and consideration by the bankruptcy court on June 17th. It’s important to note that the deal does not include 23andMe’s Lemonaid Health business, which will remain separate.

This acquisition represents a significant development in the intersection of pharmaceutical research and direct-to-consumer genetic data.