Bankrupt 23andMe sold for $256M—Who owns 15M DNA profiles now?
What's the story
American biotech company Regeneron Pharmaceuticals is acquiring genetic testing company 23andMe. The deal, worth $256 million, was finalized at a bankruptcy auction.
This acquisition includes 23andMe's extensive biobank containing genetic data from over 15 million customers.
As part of the transaction, Regeneron will take over the Personal Genome Service and Total Health and Research Services business lines from 23andMe.
However, it will not include the telehealth subsidiary Lemonaid Health in the acquisition.
Strategic move
Regeneron aims to enhance 23andMe's mission
The deal is expected to close in the third quarter of 2025, pending court and regulatory approvals
Meanwhile, Dr. George Yancopoulos, President of Regeneron, expressed confidence in the acquisition.
He said that the company believes it can assist 23andMe in its mission "to help people learn about their own DNA and how to improve their personal health."
The acquisition is also expected to further Regeneron's own efforts toward improving public health and wellness.
Closure plan
Lemonaid Health to be shut down
Notably, the acquisition deal does not cover 23andMe's telehealth subsidiary, Lemonaid Health, which the company purchased for about $400 million in 2021.
After the acquisition by Regeneron, it has been confirmed that Lemonaid Health will be shut down.
Regeneron has promised to provide employment opportunities to all employees from the acquired business units of 23andMe.
This acquisition comes after 23andMe filed for bankruptcy in March, marking a significant shift for the once-prominent genetic testing company.
Company history
23andMe's rise and fall
23andMe became popular for its at-home DNA testing kits, offering customers insights into their family histories and genetic profiles.
The company went public in 2021 via a merger with a special purpose acquisition company, peaking at a valuation of about $6 billion.
However, after going public, it failed to generate consistent revenue or establish viable research and therapeutics businesses.
Privacy concerns also emerged after a data breach impacted nearly seven million customers in 2023.
Data protection
Privacy concerns addressed in acquisition
Notably, during its bankruptcy proceedings, 23andMe had made it mandatory for all bidders to comply with its privacy policies.
A court-appointed independent "Consumer Privacy Ombudsman" will assess the deal according to these policies.
Several lawmakers and officials, including those from the Federal Trade Commission, had expressed concerns over the safety of consumers' genetic data during the sale process.
The privacy ombudsman is expected to submit a report on this acquisition by June 10.