Regeneron Steps In to Rescue 23andMe From Bankruptcy With $256M Acquisition
Regeneron Pharmaceuticals announced that it will acquire substantially all of 23andMe’s assets for $256 million following a bankruptcy auction. The acquisition includes 23andMe’s Personal Genome Service, Total Health, and Research Services business lines. The agreement comes two months after 23andMe filed for Chapter 11 bankruptcy protection in the United States. As part of the deal, Regeneron has agreed to adhere to 23andMe’s existing privacy policies and implement security measures to safeguard user data.
Lemonaid Health Excluded from 23andMe Asset Sale, Set to Shut Down as Regeneron Plans to Retain Core Staff
The acquisition follows 23andMe’s recent bankruptcy filingwhich came after declining consumer interest and a significant data breach in 2023 that compromised the personal and genetic information of millions of users. Additionally, Regeneron Pharmaceuticals aims to strengthen its genomics-based drug discovery efforts through the acquisition of key assets from 23andMe, including access to a database of over 15 million DNA profiles gathered through direct-to-consumer testing.
Court documents show that the second-highest bid in the bankruptcy auction, totaling $146 million, came from a nonprofit research institute founded by 23andMe’s former CEO and cofounder Anne Wojcicki. The deal highlights renewed concerns over data privacy stemming from the earlier breach. While Regeneron is acquiring 23andMe’s Personal Genome Service, Total Health, and Research Services, it will not acquire Lemonaid Health, the company’s telehealth subsidiary purchased in 2021 for roughly $400 million. Lemonaid Health is set to shut down, though Regeneron has offered employment to staff members of the acquired divisions.
The transaction remains subject to approval by the U.S. Bankruptcy Court for the Eastern District of Missouri. If approved, the deal is expected to close in the third quarter of 2025. In response to concerns raised by several U.S. state attorneys general about the potential misuse of genetic data, 23andMe recently appointed an ombudsman to oversee data protection. The appointment aims to ensure greater transparency and accountability in how the company handles sensitive consumer information.
“We believe we can help 23andMe deliver and build upon its mission to help those interested in learning about their own DNA and how to improve their personal health, while furthering Regeneron’s efforts to use large-scale genetics research to improve the way society treats and prevents illness overall,” stated George D. Yancopoulos, M.D. Ph.D., co-Founder, Board co-Chair, President and Chief Scientific Officer of Regeneron.
Once Valued at $6 Billion 23andMe Faces Bankruptcy Data Breach Fallout and Heightened Privacy Oversight
23andMe became widely known for its at-home DNA testing kits, which provided users with information about their ancestry and genetic traits. The company gained significant recognition and went public in 2021 through a merger with a special purpose acquisition company (SPAC). At its peak, 23andMe reached a valuation of approximately $6 billion.
Following its public debut, the company faced challenges in generating consistent revenue and establishing sustainable research and therapeutics operations. In 2023, a major data breach exposed the personal and genetic information of nearly 7 million customers, intensifying ongoing privacy concerns.
As part of its bankruptcy proceedings, 23andMe required all potential buyers to agree to its existing privacy policies. The court also appointed an independent Consumer Privacy Ombudsman to evaluate the transaction. According to both companies, the ombudsman will submit a report on the acquisition to the U.S. Bankruptcy Court by June 10. The Federal Trade Commission and several lawmakers have voiced concerns about the potential misuse of consumer genetic data during the sale process.
“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,” Mark Jensen, 23andMe’s board chair, said in a statement.
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