Regeneron Pharmaceuticals has announced its plan to acquire the majority of assets belonging to 23andMe for $256 million. The deal follows 23andMe’s filing for Chapter 11 bankruptcy protection in March and stems from Regeneron’s participation in a bankruptcy auction. The acquisition includes the Personal Genome Service, Total Health, and Research Services segments of 23andMe, key components of the company’s consumer DNA testing and health data operations.
Regeneron emphasized that this move aligns with its commitment to advancing human health by building on 23andMe’s original mission to provide individuals with insights into their genetic information. Dr. George Yancopoulos, president of Regeneron, stated that the company hopes to enhance the work 23andMe has started and integrate it with Regeneron’s broader health and wellness objectives.
However, the transaction does not include Lemonaid Health, 23andMe’s telehealth subsidiary acquired in 2021 for approximately $400 million. Regeneron confirmed that Lemonaid Health will be shut down, but it has offered employment opportunities to the staff from the acquired business divisions. The deal is pending approval by the U.S. Bankruptcy Court for the Eastern District of Missouri and is expected to close in the third quarter of the year.
Once a dominant player in consumer genomics, 23andMe gained widespread popularity for its at-home DNA test kits, which provided users with ancestry reports and genetic health risks. The company went public in 2021 through a merger with a special purpose acquisition company, reaching a peak valuation of roughly $6 billion. Despite its initial success, 23andMe faced challenges including the inability to sustain recurring revenue and difficulties in establishing a viable therapeutics and research arm. Privacy concerns further damaged its reputation, particularly after a data breach in 2023 exposed sensitive genetic information of nearly 7 million users.
To address ongoing privacy concerns, the bankruptcy court has required all bidders, including Regeneron, to comply with 23andMe’s strict privacy policies. A court-appointed Consumer Privacy Ombudsman will review the deal and present findings to the court by June 10. This step was deemed necessary after significant scrutiny from lawmakers and regulators, including concerns over the potential misuse of genetic data.
Mark Jensen, chair of 23andMe’s board, expressed optimism about the agreement, highlighting that it ensures the continuation of the company’s mission while preserving customer privacy, consent, and data protection.
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