Bankrupt DNA testing company 23andMe to be bought by Regeneron

Thomson Reuters

· Posted: May 19, 2025 8:38 AM EDT | Last Updated: 1 hr ago

Regeneron Pharmaceuticals said connected Monday it volition bargain familial investigating steadfast 23andMe Holding for $256 cardinal USD done a bankruptcy auction, and promised to prioritize the ethical usage of customers' DNA data.

Through the deal, Regeneron says it aims to bolster its capabilities in genomics-driven cause find by integrating 23andMe's trove of implicit 15 cardinal lawsuit DNA profiles, collected via its popular direct-to-consumer saliva investigating kits.

The transaction will, however, enactment the spotlight backmost on data privateness issues, particularly successful airy of 23andMe's recent challenges.

The genomics institution erstwhile a trailblazer successful ancestry DNA testing had been struggling with anemic request for its testing kits and reputational harm from a information breach successful 2023 that exposed millions of customers' familial data. The institution has collected familial information from 15 million customers who ordered its DNA investigating kits online and provided saliva samples.

The hack and consequent bankruptcy filing has drawn scrutiny from lawmakers who warned that millions of customers' genetic information could beryllium sold to unscrupulous buyers.

Regeneron said it volition comply with 23andMe's privacy policies and applicable laws with respect to the usage of customer  data.

The drugmaker besides committed to moving transparently with a court-appointed autarkic overseer, who volition measure the implications of the woody for user privateness and is expected to deliver a study to the tribunal by June 10.

The tribunal is scheduled to see support of the transaction connected June 17.

The investments successful genomics "make bully strategical sense" for Regeneron, but it mightiness instrumentality a decennary oregon much to spot a return, Bernstein expert William Pickering said.

"Given Regeneron's way record, we besides judge 23andMe customers are successful bully hands from a privateness perspective," Pickering added.

As portion of the agreement, Regeneron volition get each units of 23andMe, but telehealth work Lemonaid Health, which the genetic investigating steadfast plans to upwind down.

After the transaction, expected to implicit successful the third quarter, 23andMe volition run arsenic a wholly-owned portion of Regeneron.