Regeneron to buy 23andMe out of bankruptcy for $256 million

Regeneron has agreed to buy 23andMe, the once buzzy genetic testing company, out of bankruptcy for $256 million under a court-supervised sale process.

23andMe declared bankruptcy in March and announced it would seek a buyer, while also saying that co-founder and CEO Anne Wojcicki would resign.

Under the proposed agreement with Regeneron, the Tarrytown, New York, drugmaker will acquire 23andMe's assets, including its personal genome service and total health and research services. Regeneron said Monday that it will abide by 23andMe's privacy policies and applicable law to protect customer data.

Data privacy experts had raised concerns about 23andMe's storehouse of data for about 15 million customers, including their DNA.

23andMe's consumer-genome services will continue interrupted, the purchaser said. Regeneron will not acquire 23andMe's Lemonaid Health telehealth business.

"We have deep experience with large-scale data management," Regeneron co-founder George Yancopoulos said in a statement. The company "has a proven track record of safeguarding the genetic data of people across the globe, and, with their consent, using this data to pursue discoveries that benefit science and society."

23andMe offers consumer services that provide customers with information on their ancestry and genetic health profile, including the risk of passing on certain conditions to their children. It also has a therapeutics arm that researches and develops treatments for cancers, immune diseases and other conditions.

"We are pleased to reach an agreement with a science-driven partner that maintains our team and helps ensure our mission will carry forward," 23andMe interim CEO Joe Selsavage said in a statement. "With the support of Regeneron and their deep experience in genetic sequencing, testing and discovery, we look forward to continuing to help people access and understand the human genome for the benefit of customers and patients."

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• Bankruptcy
• Health Care