A view of the 23andMe headquarters in Sunnyvale, California, on March 25, 2025.
Tayfun Coskun | Anadolu | Getty Images
Regeneron Pharmaceuticals on Monday announced it should acquire “substantially all” of 23andMe’s assets for $256 million.
The drugmaker participated in a bankruptcy auction for 23andMe, a once high-flying genetic testing company that filed for for Chapter 11 bankruptcy protection in March. Regeneron is buying 23andMe’s Personal Genome Service, Total Health and Research Services business lines, in accordance with a release.
“We imagine we may help 23andMe deliver and construct upon its mission to assist people study their very own DNA and the right way to improve their personal health, while furthering Regeneron’s efforts to enhance the health and wellness of many,” Dr. George Yancopoulos, Regeneron’s president, said in a press release.
Regeneron won’t buy the corporate’s telehealth subsidiary, Lemonaid Health, which 23andMe had acquired for around $400 million in 2021. Lemonaid Health might be shut down, but Regeneron has offered to employ all staffers of the acquired business units, in accordance with the discharge.
The deal continues to be subject to approval by the U.S. Bankruptcy Court for the Eastern District of Missouri. Pending approval, it’s expected to shut within the third quarter of this yr, in accordance with the discharge.
23andMe rocketed into the mainstream due to its at-home DNA testing kits that gave customers insight into their family histories and genetic profiles. The five-time CNBC Disruptor 50 company went public in 2021 via a merger with a special purpose acquisition company. At its peak, 23andMe was valued at around $6 billion.
The corporate struggled to generate recurring revenue and get up viable research and therapeutics businesses after going public, and it has been tormented by privacy concerns since hackers accessed the knowledge of nearly 7 million customers in 2023.
In its bankruptcy proceedings, 23andMe required all bidders to comply with its privacy policies, and a court-appointed, independent “Consumer Privacy Ombudsman” will assess the deal, the businesses said.
Several lawmakers and officials, including the Federal Trade Commission, had expressed concerns concerning the safety of consumers’ genetic data through 23andMe’s sale process. The privacy ombudsman will present a report on the acquisition to the court by June 10.
“We’re pleased to have reached a transaction that maximizes the worth of the business and enables the mission of 23andMe to live to tell the tale, while maintaining critical protections around customer privacy, selection and consent with respect to their genetic data,” Mark Jensen, 23andMe’s board chair, said in a press release.
WATCH: Contained in the fall of 23andMe
