23andMe will continue to provide its DNA testing services following its acquisition out of bankruptcy. Regeneron Pharmaceuticals, a New York-based biotech firm, announced on Monday that it has reached a deal to acquire the startup for $256 million, which also includes its Total Health and Research Services division, along with a biobank containing customer data and genetic samples.
Regeneron emerged victorious in the bidding process for 23andMe, where all participants were required to adhere to relevant legal guidelines and the company’s privacy policies concerning customer data. 23andMe maintains that customer data is anonymized and that genetic samples are deleted when users opt to remove their accounts, though there is uncertainty regarding what information may remain and potentially transfer to Regeneron.
The deal is anticipated to finalize later this year, pending approval from the US Bankruptcy Court. Regeneron co-founder George D. Yancopoulos expressed that the acquisition will advance the company’s “large-scale genetics research” efforts aimed at developing future medications and treatments.
Since its inception in the at-home DNA testing market, 23andMe has amassed over 15 million genetic samples and data points from customers. The company, which once had a market valuation of $6 billion after its public offering in 2021, filed for bankruptcy in March due to ongoing financial losses. Co-founder and former CEO Anne Wojcicki also resigned at that time.
Mark Jensen, chair of 23andMe, stated, “We are pleased to have reached a transaction that maximizes the value of the business and enables the mission of 23andMe to live on, while maintaining critical protections around customer privacy, choice, and consent with respect to their genetic data.” He also expressed gratitude to Regeneron for committing to employ all staff from the acquired units, which will support 23andMe’s continuing efforts to help individuals access and understand health benefits through deeper insights into the human genome.
