Pharmaceutical maker Regeneron announced Monday it will buy genetic testing company 23andMe for $256 million following a bankruptcy auction.
Regeneron said it will acquire 23andMe’s genomics service and its bank of 15 million customers’ personal and genetic data as part of the deal. The pharma giant said it plans to use the 23andMe customer data to help drug discovery, and that it will “prioritize the privacy, security, and ethical use of 23andMe’s customer data.”
23andMe filed for bankruptcy protection in March after a data breach exposed the private and genetic data of 7 million customers throughout 2023. The company’s stock price also plummeted to near-zero amid waning consumer interest in the company’s DNA testing kits. 23andMe’s founder and chief executive Anne Wojcicki resigned from the company following the company’s collapse.
After its filing, a federal bankruptcy court was appointed to oversee the sale of 23andMe’s assets, sparking concerns that the stores of customer data could be sold to adversarial nations or unethical buyers.
Regeneron said in its statement that as the named buyer in the bankruptcy auction, it “intends to ensure compliance” with 23andMe’s privacy policies and laws regarding customer data.
The bankruptcy court is set to consider Regeneron’s acquisition on June 17. Regeneron said it will not acquire 23andMe’s Lemonaid Health business.
