Pharmaceutical giant Regeneron has won a bankruptcy court auction to acquire genetic testing company 23andMe for $256 million, gaining access to the genetic data of approximately 15 million customers while promising to "prioritize the privacy, security, and ethical use" of this sensitive information, as reported by TechCrunch.
Acquisition Details and Assets
The deal announced on May 19, 2025, will see Regeneron acquire "substantially all" of 23andMe's assets, including its Personal Genome Service, Total Health business line, Research Services business line, and the company's extensive biobank containing genetic data from approximately 15 million customers. Notably excluded from the acquisition is 23andMe's Lemonaid Health subsidiary, which will be wound down separately according to the purchase agreement.
Following the transaction, the genetic testing pioneer will operate as a wholly owned subsidiary of Regeneron, with the pharmaceutical company offering employment to all employees of the acquired business units. The biotechnology firm plans to leverage the genetic database for drug discovery and development, building upon its existing Genetics Center which has already sequenced DNA from millions of people. George Yancopoulos, Regeneron's co-founder and chief scientific officer, stated that the acquisition will help "further Regeneron's efforts to use large-scale genetics research to improve the way society treats and prevents illness."
Data Privacy Protections
The sale of 23andMe's genetic database has triggered significant privacy concerns, prompting the implementation of several key safeguards. A court-appointed independent Consumer Privacy Ombudsman will examine the transaction and assess its impact on consumer privacy, with findings to be reported to the court by June 10, 2025. Both the UK Information Commissioner's Office and the Office of the Privacy Commissioner of Canada have called for robust protection of customer data throughout the bankruptcy proceedings.
These oversight measures are particularly crucial given 23andMe's troubled history with data security, including the October 2023 breach that exposed information from approximately 6.9 million users. The concerns extend beyond commercial misuse, with some U.S. lawmakers expressing alarm about the potential acquisition of Americans' genetic data by foreign adversaries like China. Regeneron has publicly committed to honoring 23andMe's existing privacy policies and protecting genetic information in accordance with applicable laws.
Regulatory Approval Process
Several regulatory hurdles remain before the acquisition can be finalized. The U.S. Bankruptcy Court for the Eastern District of Missouri must approve the deal at a hearing scheduled for June 17, 2025, and the transaction requires clearance under the Hart-Scott-Rodino Act. If all approvals are secured as anticipated, the deal is expected to close during the third quarter of 2025.
Market reaction to the announcement has been subdued, with Regeneron's stock opening down approximately 1% following the news and continuing to trade down 0.4% on the day of the announcement. This reflects broader investor sentiment toward Regeneron in 2025, as the company's stock has declined by about 17% year-to-date.
Impact on 23andMe Customers
Current users of the genetic testing service have until July 14, 2025, to file any claims against 23andMe as part of the bankruptcy process. Despite the ownership change, Regeneron plans to continue all consumer genome services without interruption, allowing existing customers to maintain access to their genetic information and testing results. This commitment aims to provide continuity for the millions of individuals who have entrusted their genetic data to the company over the years.
The acquisition comes after a tumultuous period for 23andMe customers, who faced significant privacy concerns following the October 2023 data breach that compromised nearly 7 million users' information. Many customers received notifications about the bankruptcy filing and potential claims process, raising questions about the long-term security of their highly sensitive genetic information as it changes hands. Consumer advocacy groups have highlighted weaknesses in current privacy laws that may not adequately protect genetic data during bankruptcy proceedings.
Share this post