Breaking Biotech News: Regeneron to Acquire Troubled 23andMe for $256 Million Amid Bankruptcy

Published: May 19, 2025

In a significant move within the biotechnology sector, pharmaceutical giant Regeneron Pharmaceuticals announced today, May 19th, its successful bid to acquire the well-known genetic testing company 23andMe Holding Co. The deal, valued at $256 million, will see Regeneron take ownership of 23andMe through a bankruptcy auction.

This acquisition comes after a tumultuous period for 23andMe. The company, a pioneer in direct-to-consumer DNA testing, filed for bankruptcy in March, struggling with declining demand for its ancestry kits and reeling from the aftermath of a damaging data breach in 2023 that compromised the genetic information of millions of its customers.

Data Privacy at the Forefront

Understandably, the bankruptcy proceedings raised alarm bells, particularly among lawmakers concerned about the potential sale of 23andMe’s vast database – containing genetic information from approximately 15 million customers. The primary worry was that this sensitive data could fall into the hands of unscrupulous buyers.

Addressing these concerns head-on, Regeneron has stated its commitment to upholding 23andMe’s existing privacy policies and all applicable laws concerning customer data. Furthermore, the drugmaker has expressed its readiness to provide detailed plans for its intended use of the data to a court-appointed overseer. This overseer was put in place last month to specifically monitor 23andMe’s handling of customer genetic information and its security protocols throughout the bankruptcy process.

What’s Included and What’s Next?

Under the terms of the agreement, Regeneron will acquire all units of 23andMe, with one notable exception: the telehealth service Lemonaid Health. 23andMe plans to wind down Lemonaid Health separately.

Following the completion of the transaction, which is anticipated in the third quarter of this year, 23andMe will continue to operate, but as a wholly-owned direct or indirect unit within Regeneron.

Potential Implications

This acquisition could be a strategic win for Regeneron, potentially providing the pharmaceutical company with access to a rich genetic database that could fuel its drug discovery and development pipelines. For 23andMe customers, the focus will be on how Regeneron manages their data and whether new opportunities for research participation or insights emerge under new ownership.

The coming months will likely shed more light on Regeneron’s specific plans for integrating 23andMe’s assets and data into its broader research and development strategy. This deal underscores the immense value – and critical responsibilities – associated with large-scale human genetic databases in the modern biomedical landscape.

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