23andMe acquired by biotech giant Regeneron after bankruptcy filing

23andMe vows to 'safeguard data' after bankruptcy

Attorney Andrew Crawford joins LiveNOW's Christina Evans to discuss 23andMe filing for bankruptcy and concerns about consumer data.

LOS ANGELES - Biotechnology company Regeneron Pharmaceuticals is acquiring genetic testing company 23andMe for $256 million, two months after 23andMe sought Chapter 11 bankruptcy protection amid financial struggles.

The deal comes after 23andMe announced in March it intended to sell nearly all assets through a court-approved restructuring plan. The company’s co-founder and CEO, Anne Wojcicki, stepped down from her executive role but remains a board member.

23andMe has faced significant financial challenges since becoming a public company in 2021. The business struggled with profitability, privacy concerns around customer genetic information, and fallout from a notable 2023 data breach, leading to uncertainty about its future.

Why is Regeneron acquiring 23andMe?

The backstory:

The acquisition will include 23andMe’s personal genome service and its health and research units. The deal notably excludes Lemonaid Health, a telehealth subsidiary which 23andMe plans to wind down completely.

In announcing the deal, Regeneron emphasized that it sees significant value in preserving and expanding 23andMe’s core mission of empowering individuals through genetic insights. The company also said it plans to retain all of 23andMe’s current employees.

What they're saying:

"We believe we can help 23andMe deliver and build upon its mission to help people learn about their own DNA and how to improve their personal health, while furthering Regeneron’s efforts to improve the health and wellness of many," said Regeneron’s co-founder and Chief Scientific Officer George Yancopoulos.

Mark Jensen, chair of 23andMe’s special committee, highlighted customer privacy as central to the transaction, stating, "We are pleased to have reached a transaction that maximizes the value of the business and enables the mission of 23andMe to live on, while maintaining critical protections around customer privacy, choice, and consent with respect to their genetic data."

FILE - Close-up of collection kit for personal genomics technology company 23AndMe on a retail store shelf, March 18, 2019.  (Photo by Smith Collection/Gado/Getty Images)

What happens to customer data after Regeneron’s purchase?

Big picture view:

Regeneron pledged to comply strictly with existing 23andMe privacy policies, stating it would process all customer data according to current consents, privacy statements, and terms of service, implementing robust security measures.

The acquisition includes oversight by a court-appointed, independent consumer privacy ombudsman who will evaluate the deal’s privacy implications and deliver a report to the court by June 10.

What's next:

A court hearing to consider approving the Regeneron-23andMe transaction is scheduled for June 17. Subject to approval from the U.S. Bankruptcy Court for the Eastern District of Missouri, the transaction is anticipated to close in the third quarter of this year.

Shares of Regeneron experienced a minor dip ahead of the market opening following the announcement.