News Summary
Regeneron Pharmaceuticals has announced a $256 million acquisition of key assets from 23andMe, which is navigating bankruptcy challenges. This strategic move will give Regeneron access to 23andMe’s divisions, including its Personal Genome Service and an extensive biobank. Despite ongoing concerns over data privacy, 23andMe will remain a subsidiary, continuing its consumer DNA testing services. The acquisition aims to leverage genetic data for health treatment advancements while ensuring consumer data protection through an appointed ombudsman.
New York – Regeneron Pharmaceuticals has announced plans to acquire key assets of 23andMe for $256 million as the genetic testing company navigates bankruptcy challenges and concerns surrounding data privacy. The acquisition, which will require bankruptcy court and regulatory approval, is expected to close in the third quarter of 2025.
Upon completion of this deal, Regeneron will gain ownership of several of 23andMe’s divisions, including its Personal Genome Service, Total Health, and Research Services divisions, as well as an extensive biobank containing genetic data collected from millions of customers. Despite the acquisition, 23andMe will continue to operate as a wholly owned subsidiary, ensuring that its consumer DNA testing services remain uninterrupted.
The strategic aim of this acquisition is to leverage Regeneron’s scientific expertise alongside 23andMe’s vast reserves of genetic information to enhance the development of health treatments. Regeneron has promised to uphold the existing privacy policies of 23andMe and will collaborate with a Customer Privacy Ombudsman to safeguard consumer data. Under the terms of the deal, all applications of genetic data will require user consent, remain de-identified, and comply with applicable legal and ethical guidelines.
This acquisition, however, will not cover 23andMe’s telehealth platform, Lemonaid Health, which is set to be phased out. Regeneron’s interest in acquiring 23andMe’s assets stems from the company’s financial struggles, highlighted by its recent bankruptcy filing just two months prior. 23andMe had grappled with difficulties in generating recurring revenue and faced ongoing scrutiny over its data privacy policies.
The bidding process for 23andMe’s assets culminated in Regeneron being declared the winning bidder during a bankruptcy auction. The company’s acquisition will grant Regeneron access to the genetic data of millions of individuals, raising fresh concerns about data security, especially in light of a data breach that previously exposed personal information belonging to millions of 23andMe users.
Despite these concerns, consumers can expect no disruption in their access to 23andMe’s testing services during and after the transition period. The company, once valued at $6 billion, has not turned a profit since going public in 2021. It faced persistent challenges, such as a decrease in demand for testing kits and a failed subscription service that further exacerbated its financial difficulties.
Recent events have put 23andMe’s data security under the spotlight. A data breach in 2023 revealed vulnerabilities within the company’s security framework, resulting in a lawsuit that was settled in relation to privacy violations. 23andMe clarified that DNA records were not lost during the breach. The aftermath also saw the company resorting to cutting around 40% of its workforce and attempts to take the company private before opting for bankruptcy protection.
State attorneys general expressed concerns about 23andMe’s data management prior to its bankruptcy, advising customers to delete their information due to apprehensions over their data privacy. In the wake of the acquisition, a court-appointed overseer will be responsible for monitoring Regeneron’s use of 23andMe’s data, ensuring consumer data privacy is maintained.
The ongoing evolution of the genetic testing field and heightened awareness of data privacy issues present a complex landscape for Regeneron and 23andMe moving forward. As the acquisition unfolds, both companies will be under scrutiny regarding their handling of sensitive genetic information, and the implications of this major transaction will likely resonate across the biotechnology sector.
Deeper Dive: News & Info About This Topic
- The New York Times
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- Wikipedia: Genetic Testing
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- Encyclopedia Britannica: Genetics
- Google News: 23andMe Data Privacy
Author: STAFF HERE NEW YORK WRITER
NEW YORK STAFF WRITER The NEW YORK STAFF WRITER represents the experienced team at HERENewYork.com, your go-to source for actionable local news and information in New York, the five boroughs, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as New York Fashion Week, Macy's Thanksgiving Day Parade, and Tribeca Film Festival. Our coverage extends to key organizations like the Greater New York Chamber of Commerce and United Way of New York, plus leading businesses in finance and media that power the local economy such as JPMorgan Chase, Goldman Sachs, and Bloomberg. As part of the broader HERE network, including HEREBuffalo.com, we provide comprehensive, credible insights into New York's dynamic landscape.
