Regeneron Pharmaceuticals announced on Monday that it will acquire the genetic testing business and most assets of 23andMe for $256 million in cash.
The transaction, which excludes 23andMe’s telehealth unit, is pending approval from a bankruptcy court, with the deal expected to close in the third quarter of 2025.
The acquisition follows 23andMe’s Chapter 11 bankruptcy filing in March, after a series of strategic missteps and mounting losses.
Once valued at nearly $6 billion at the height of the direct-to-consumer DNA testing boom, the company struggled to sustain growth beyond its initial product offering.
South San Francisco-based 23andMe filed for bankruptcy last month, aiming to sell its business at auction following a steep drop in consumer demand and a 2023 data breach that compromised the genetic and personal information of millions of users.
Court documents show that the second-highest bid—$146 million—came from a nonprofit research institute founded by Anne Wojcicki, 23andMe’s cofounder and former CEO.
Access to genetic data
As part of the sale, the acquiring pharmaceutical company will gain access to an unprecedented trove of genetic data amassed since 23andMe introduced its direct-to-consumer testing in 2007.
This extensive dataset has been central to the company’s value proposition and research partnerships over the years.
The New York-based drugmaker said it intends to continue offering 23andMe’s testing services and will adopt the firm’s existing privacy standards.
“We assure 23andMe customers that we are committed to protecting the 23andMe dataset with our high standards of data privacy, security and ethical oversight and will advance its full potential to improve human health,” said Aris Baras, a senior vice president at Regeneron.
Customers concerned about their privacy can take action by logging into their 23andMe accounts: they can delete their data through the Settings menu and withdraw consent for research under Preferences, which will also trigger the destruction of any stored saliva samples.
The company said it is prepared to work with a court-appointed privacy ombudsman to address concerns around data use and protection.
Privacy concerns remain
The nature of the data involved has raised questions among privacy experts.
California’s attorney general issued a consumer alert following 23andMe’s bankruptcy, advising individuals to consider deleting their data.
Several lawmakers and federal officials, including the Federal Trade Commission, raised concerns during 23andMe’s sale process about the security and privacy of consumers’ genetic data.
The scrutiny centered on how such sensitive information would be handled post-sale and whether adequate safeguards would remain in place to protect individuals’ personal and health-related data from misuse or unauthorized access.
The company previously stated that any buyer would be required to adhere to its privacy protocols.
23andMe’s transparency reports indicate that between 2015 and February this year, it received 11 requests from law enforcement for customer data and did not provide any without consent.
Strategic setback for 23andMe
The sale marks a turning point for 23andMe, which expanded beyond DNA kits into drug discovery and telehealth under co-founder Anne Wojcicki.
However, its efforts proved financially unsustainable, especially after the end of a key partnership with GlaxoSmithKline and the underperformance of its Lemonaid Health acquisition.
Regeneron, which operates its own genetics research center, said the acquisition supports its broader goals in medicine development.
The company reported a $4.4 billion profit last year and currently has six medicines in clinical trials backed by genetic research.
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