Regeneron Pharmaceuticals has agreed to purchase genetic testing company 23andMe for $256 million through a bankruptcy auction, as announced by the companies on Monday.
Regeneron has stated that it will adhere to 23andMe’s privacy policies and relevant laws regarding the use of customer data, and it is prepared to explain its intended use of this data to a court-appointed overseer.
The bankruptcy proceedings, filed in March, have raised concerns among lawmakers about the potential sale of millions of customers’ genetic data to unethical buyers. In response, 23andMe recently agreed to allow a court-appointed overseer to monitor its handling of customer data and security policies during the bankruptcy process.
The company has gathered genetic information from 15 million customers who used its DNA testing kits and provided saliva samples. However, 23andMe has been facing challenges due to low demand for its ancestry testing kits and a data breach in 2023 that compromised the genetic data of millions of customers.
Under the deal, Regeneron will acquire all of 23andMe’s operations, except for its telehealth service Lemonaid Health, which 23andMe plans to shut down. Following the transaction, 23andMe will continue as a fully owned subsidiary of Regeneron. The companies expect to finalize the deal in the third quarter of the year.
