Regeneron to acquire 23andMe in US $256M bankruptcy deal

USA – Biotech company Regeneron Pharmaceuticals has announced plans to acquire genetic testing firm 23andMe for US $256 million through a bankruptcy auction.

The move comes as 23andMe continues to face financial troubles, including weak sales and the fallout from a major data breach.

The deal, expected to close in the third quarter of this year, excludes 23andMe’s telehealth arm, Lemonaid Health, which is set to be shut down.

Once finalized, 23andMe will operate as a wholly owned subsidiary of Regeneron, either directly or indirectly.

In response to privacy concerns raised by lawmakers, Regeneron has committed to honoring 23andMe’s existing data protection policies and complying with all relevant laws.

The company will also work with a court-appointed overseer to ensure transparency around its plans for using the genetic data.

23andMe, known for its direct-to-consumer DNA testing kits, has collected genetic information from over 15 million people.

However, the company has struggled in recent years due to declining demand for ancestry testing and a serious cybersecurity breach in 2023 that exposed sensitive customer information.

To protect users during the bankruptcy process, 23andMe previously agreed to let a court-appointed official oversee how it handles genetic data and security protocols.

With this acquisition, Regeneron is expected to gain access to one of the world’s largest genetic databases.

The company has not yet revealed how it plans to use the data, but its cooperation with regulators and commitment to privacy may help ease public concerns.