Regeneron Pharmaceuticals, a leading US human genetics and biotechnology company, has announced that it will purchase troubled DNA testing company 23andMe for $256 million.
23andMe announced it was filing for bankruptcy in March.
The company had seen its share price plummet since it went public in February 2021. It also suffered a major data breach in October 2023, when hackers breached about 14,000 customers’ accounts, gaining access to the data of 6.9 million people. In September 2024, 23andMe agreed to pay $30 million to settle a lawsuit by affected customers.
23andMe said the sale agreement included Regeneron’s commitment to comply with 23andMe’s privacy policies and applicable law regarding customer personal data.
A court-appointed, independent consumer privacy ombudsman will also conduct an examination of the purchase and the impact, if any, on consumers’ privacy
Mark Jensen, chair and member of the Special Committee of the Board of Directors of 23andMe, said: “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.”
He also said that Regeneron had offered employment to all 23andMe employees.
George D. Yancopoulos, president and chief scientific officer of Regeneron, said: “We assure 23andMe customers that we will apply our high standards for safety and integrity to their data and ongoing consumer genetic services. 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.”
Genetic genealogy expert Debbie Kennett told Who Do You Think You Are? Magazine: “I think this is probably the best outcome we could hope for. 23andMe was set up in the first place with the aim of improving healthcare, preventing disease and accelerating research by leveraging the power of their large database. However, despite attracting a lot of publicity, 23andMe has never made a profit in its entire existence. Regeneron on the other hand are a large company with a proven track record of drug development so I would hope they will be able to revitalise the business and turn it into a profitable concern. Eighty per cent of 23andMe customers have actively elected to participate in research and if customers feel able to put their trust in the new owners then this high opt in rate will continue.
“Regeneron have said that they will ‘continue all consumer genome services uninterrupted’ and it seems highly likely to me that they will want to expand the genealogy and ancestry services and features to grow the database and allow them to make more discoveries.
“If anyone is worried about insurance companies accessing their data they need to be aware that the ABI (Association of British Insurers) have a Code on Genetic Testing and Insurance which means that predictive tests such as those provided by 23andMe cannot be used for insurance purposes.”
