Michelle Chapman, Associated Press
Biotechnology Company Regeneron Pharmaceuticals is purchasing 23andMe for $256 million, two months after the genetic testing company filed for Chapter 11 bankruptcy protection.
On March 23, Andme said it was trying to sell “virtually all assets” through a court-approved reorganization plan. Co-founder and CEO Anne Wojcicki also resigned from the top post, but remained on a board member.
23Andme has been facing an uncertain future for some time. Beyond the fight to become private, the company has struggled to find a profitable business model since its launch in 2021. Privacy concerns related to customer genetic information also emerged with questions about what new ownership means for users’ data, especially from the 2023 data breaches.
The proposed deal with Regeneron includes 23andMe’s personal genomic services and total health and research services. This does not include Lemonaid Health Subsidiary, a telehealth service provider that 23andMe is set to decline.
“We believe 23andMe can fulfill and build a mission to help people learn how to improve their DNA and their personal health. At the same time, it can promote Regeneron’s efforts to improve the health and wellbeing of many.”
Regeneron said Monday that it has security controls designed to process and protect all customer personal data in accordance with 23andMe’s privacy policy and applicable laws and in accordance with consent, privacy policy and statements, terms of use and notifications currently in effect.
“We are pleased to announce that we are a member of the 23andme board of directors, Mark Jensen, chairman and member of the 23andme board of directors.
Jensen says Regeneron will retain all 23andme employees.
As part of the court’s supervisory sales process, 23andMe requested that all bidders be guaranteed to comply with the privacy policy and applicable laws.
Regeneron said the proposed transaction coincides with 23andMe’s privacy statement, but the court-designated independent consumer privacy ombudsman will also look into the transaction and potential impact on consumer privacy. The Ombudsman will file a report with the court by June 10th.
A court hearing to consider approving the transaction is currently scheduled for June 17th. The transaction, which requires approval from the US Bankruptcy Court for the Eastern District of Missouri, is expected to close in the third quarter.
Regeneron’s shares fell slightly before the market opened.
Original issue: May 19, 2025, 2:44pm EDT
