Regeneron Acquires 23andMe Assets for $256 Million After Bankruptcy
Pharmaceutical company Regeneron has acquired the assets of genetic testing company 23andMe for $256 million. The purchase follows 23andMe's bankruptcy auction. The deal includes 23andMe's genomics service and data from its 15 million customers.
Regeneron's Plans for Genetic Data
Regeneron plans to use the acquired data to advance drug discovery. The company stated it will prioritize the privacy, security, and ethical use of the customer data. This acquisition raises concerns about the future of genetic data privacy.
23andMe's Bankruptcy and Data Breach
23andMe filed for bankruptcy protection in March after a data breach exposed the private and genetic information of 7 million customers in 2023. Declining consumer interest in DNA testing kits also contributed to the company's downfall. Following the bankruptcy filing, founder and CEO Anne Wojcicki resigned.
Concerns Over Data Security
A federal bankruptcy court oversaw the sale of 23andMe's assets. This process raised concerns about the potential sale of sensitive customer data to unethical buyers or adversarial nations. Regeneron has stated its commitment to complying with 23andMe's existing privacy policies and relevant laws.
Acquisition Details
The bankruptcy court will review Regeneron's acquisition on June 17. The deal does not include 23andMe's Lemonaid Health business. More details about the acquisition and data usage policies are expected following the court's review.
Original reporting by TechCrunch:
