The previous CEO of 23andMe is poised to reclaim leadership of the genetic testing firm after placing a $305 million bid from the nonprofit organization.
Recently, Regeneron Pharmaceuticals announced a deal to purchase the company for $256 million, surpassing a $146 million offer from Anne Wojcicki and the nonprofit TTAM Research Institute. A former executive noted that this substantial offer prompted Wojcicki to elevate her bid with backing from the Fortune 500 entity. The deal is anticipated to finalize in the upcoming weeks, pending a court hearing scheduled for June 17, as stated by the company on Friday.
Wojcicki had made several attempts while CEO to retain the company as private. Each attempt was met with rejection from the board, and ultimately all independent directors resigned in response to her acquisition efforts.
As a leader in ancestral DNA testing, 23andMe filed for bankruptcy in March and aimed to auction its business following a 2023 data breach that compromised sensitive genetic and personal information of millions of users.
Since its bankruptcy announcement, 23andMe has seen a significant loss of clients, with a concerning trend of users wanting their accounts closed. The company, which analyzes complete genomes with unknown parties showing interest, reported that approximately 15% of its current customers are requesting account terminations in light of the bankruptcy and potential sale. Experts recommend that customers ask firms to delete their DNA data to safeguard privacy. On Friday, TTAM endorsed 23andMe’s existing privacy policy, asserting compliance with all relevant data protection regulations. Earlier this week, New York and over 20 other U.S. states filed a lawsuit against 23andMe to contest the sale of personal data from its clients.
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Regeneron expressed enthusiasm for the new bid, but acknowledged that if Wojcicki’s offer were ultimately accepted, it would incur a $10 million termination fee.
Source: www.theguardian.com
