Bankrupt DNA Testing Company 23andMe Acquired for $256 Million | Technology

Regeneron Pharmaceuticals has announced its plan to acquire genetic testing firm 23andMe Holding for $256 million through bankruptcy auctions, as revealed on Monday.

Regeneron stated that it adheres to 23andMe’s privacy policy and relevant laws concerning customer data usage, and is prepared to provide detailed explanations to court-appointed supervisors regarding this data. The deal is expected to finalize in the third quarter.

“The Regeneron Genetics Center has a solid track record of safeguarding genetic data for individuals globally while pursuing scientific discoveries that leverage this information for societal benefit.” “We assure our 23andMe customers that we will uphold strict standards of data privacy, security, and ethical oversight, enabling us to enhance human health.”

Lawmakers scrutinized the bankruptcy proceedings initiated in March, expressing concerns that genetic data from millions of clients could end up in the hands of unscrupulous buyers. One organization, the Global Biodata Trust, formally proposed acquiring 23andMe, advocating for consumer control over data, allowing individuals to either store their DNA information in a trust or share it with related public benefit companies.

Nevertheless, this bid also posed risks to customer privacy. The United States presently lacks comprehensive privacy regulations that enforceable guidelines around how Regeneron manages, utilizes, and shares genetic data acquired from 23andMe. This absence allows businesses to modify their privacy policies at will, often without prior notice to users. Without federal privacy laws, there is minimal recourse to hold organizations, including nonprofits, accountable.

Last month, 23andMe agreed to permit court-appointed supervisors to oversee client genetic information and security policies throughout the bankruptcy process.

Under the new agreement, Regeneron will acquire all of 23andMe’s assets, with the exception of Telehealth Service Lemonaid Health, which 23andMe intends to shut down. Following the completion of the transaction, 23andMe will continue as a direct or indirect subsidiary of Regeneron, the company stated.

The company has gathered genetic data from 15 million customers who ordered DNA test kits online and provided saliva samples. Weak demand for ancestor test kits has been exacerbated by the data breaches that occurred in 2023.