DNA Giant 23andMe To Be Acquired After Bankruptcy

On Monday (May 19), the biotech giant Regeneron  Pharmeceuticals announced that they were acquiring the DNA testing company 23andMe after it was up for sale in an auction after declaring bankruptcy. Regeneron is best known for its antibody drug cocktail which was used by President Donald Trump when he fell ill with COVID-19 during his first term.

23andMe was a dominant product as genetic testing became more publicly accepted in past years, with customers buying their test kits to find out more about their family ancestry and traits as well as potential health risks. It had a peak valuation of $6 billion after going public in 2021. The company’s decline happened afterward, due to a combination of less customers buying kits and a data breach back in 2023 which exposed genetic information for seven million of its customers.

A class-action lawsuit against 23andMe would be filed, with litigants claiming they were never notified of the breach. Last September, seven members of its board resigned citing their lack of confidence in chief executive Anne Wojcicki, according to the New York Times. The company would file for bankruptcy in March to “facilitate a sale process to maximize the value of its business.” Wojcicki would resign during that period as well.

The deal is worth $256 million, and will give Regeneron full control of all of 23andMe’s business assets which include its Personal Genome Service, Total Health and Research Services divisions. It is subject to a review from a corporate privacy ombudsman who will provide the final report on June 10. Then, approval must be given under federal antitrust laws and the U.S. Bankruptcy Court for the Eastern District of Missouri, whom which a hearing is set for June 17. If all proceeds according to plan, the sale would become official in the third quarter of 2025.

Regeneron has already pledged to keep customers’ data and associated materials secure. “[W]e want to let 23andMe customer know that we are committed to protecting this dataset with our high standards of data privacy, security and ethical oversight. We believe that Regeneron has the right expertise, leadership and vision to revitalize 23andMe, protect its existing customer base and benefit society overall,” the company said in a statement.