Regeneron Pharmaceuticals to Acquire 23andMe Holding for $256 Million in Bankruptcy Auction

In a significant move, drugmaker Regeneron Pharmaceuticals has announced its acquisition of genetic testing firm 23andMe Holding for $256 million USD through a bankruptcy auction. This decision comes as part of the bankruptcy proceedings filed in March, which had raised concerns among lawmakers regarding the handling of customers’ genetic data.

Regeneron has assured that it will adhere to 23andMe’s privacy policies and comply with applicable laws in using customer data. The company has also expressed readiness to provide detailed information about its intended use of the data to a court-appointed overseer.

With a customer base of 15 million individuals who have ordered DNA testing kits and provided saliva samples, 23andMe has been a prominent player in the genetic testing industry. However, the company faced challenges such as weak demand for ancestry testing kits and a data breach in 2023 that exposed customers’ genetic information.

As part of the agreement, Regeneron will acquire all units of 23andMe, except for telehealth service Lemonaid Health, which is set to be wound down. Following the completion of the transaction, 23andMe will operate as a wholly owned subsidiary of Regeneron.

The companies anticipate closing the deal in the third quarter of this year, marking a significant development in the biotechnology and genetic testing sectors. The acquisition is expected to have far-reaching implications for both companies and the broader healthcare industry.

Overall, the acquisition of 23andMe by Regeneron underscores the growing importance of genetic testing and personalized medicine in the healthcare landscape. It also highlights the need for robust data privacy and security measures to safeguard customers’ genetic information.