Regeneron Pharmaceuticals has announced its acquisition of key assets from the bankrupt genetic testing company 23andMe for $256 million. The deal includes 23andMe's Personal Genome Service, Total Health and Research Services, and its extensive biobank of consumer genetic data. Regeneron has pledged to maintain uninterrupted delivery of all consumer genome services, ensuring that existing customers continue to receive the services they have come to rely upon.
A central concern surrounding this acquisition is the privacy and ethical use of the genetic data of approximately 15 million customers. Regeneron has committed to upholding 23andMe’s existing privacy policies and complying with legal standards, emphasizing its commitment to data protection and ethical oversight. The company will operate under the oversight of a court-appointed customer-privacy ombudsman, as mandated in the bankruptcy auction. A privacy impact report from the ombudsman is expected by June 10, with the bankruptcy court set to review the deal on June 17.
23andMe, once valued at over $6 billion, faced significant financial challenges leading to its Chapter 11 bankruptcy filing in March 2025. The company struggled with profitability issues and faced public scrutiny following a data breach in 2023 that affected nearly 7 million users. Despite these challenges, Regeneron's acquisition is seen as a strategic move to enhance its genetic research capabilities and expand its health and wellness goals.
This acquisition represents a significant development in the biotechnology sector, highlighting the importance of data privacy and ethical considerations in the handling of sensitive genetic information. The success of this endeavor will largely depend on Regeneron's ability to uphold stringent privacy standards and effectively integrate 23andMe's assets into its existing operations.