Regeneron Pharmaceuticals announced Monday that it will acquire DNA testing company 23andMe for $256 million through a bankruptcy auction.
As part of the deal, Regeneron emphasized that it will adhere to 23andMe’s privacy policies and comply with all relevant laws concerning the use of customer genetic data. The company also stated it is prepared to explain its intended data usage to a court-appointed overseer.
23andMe filed for bankruptcy in March, sparking concern among lawmakers about the potential misuse of sensitive genetic data from millions of customers. In response, the company agreed last month to the appointment of an independent overseer to monitor how customer data is handled and protected during the proceedings.
To date, 23andMe has collected genetic information from over 15 million people through online DNA test kit sales. However, the company has been facing declining demand for its ancestry kits and was further impacted by a 2023 data breach that compromised millions of users’ information.
Under the acquisition, Regeneron will take over all of 23andMe’s business units, excluding Lemonaid Health, its telehealth subsidiary, which will be shut down. Once the deal is finalized, 23andMe will become a wholly owned subsidiary of Regeneron, either directly or indirectly.
The companies expect the transaction to close in the third quarter of this year.
