Regeneron Pharmaceuticals to buy 23andMe and its data for $256 million

Regeneron Pharmaceuticals on Monday announced it will acquire "substantially all" of 23andMe's assets for $256 million.

The drugmaker participated in a bankruptcy auction for 23andMe, a once high-flying genetic testing company that filed for for Chapter 11 bankruptcy protection in March. Regeneron is buying 23andMe's Personal Genome Service, Total Health and Research Services business lines, according to a release.

"We believe we can help 23andMe deliver and build upon its mission to help people learn about their own DNA and how to improve their personal health, while furthering Regeneron's efforts to improve the health and wellness of many," Dr. George Yancopoulos, Regeneron's president, said in a statement.

Regeneron will not buy the company's telehealth subsidiary, Lemonaid Health, which 23andMe had acquired for around $400 million in 2021. Lemonaid Health will be shut down, but Regeneron has offered to employ all staffers of the acquired business units, according to the release.

The deal is still subject to approval by the U.S. Bankruptcy Court for the Eastern District of Missouri. Pending approval, it's expected to close in the third quarter of this year, according to the release.

23andMe rocketed into the mainstream because of its at-home DNA testing kits that gave customers insight into their family histories and genetic profiles. The five-time CNBC Disruptor 50 company went public in 2021 via a merger with a special purpose acquisition company. At its peak, 23andMe was valued at around $6 billion.

The company struggled to generate recurring revenue and stand up viable research and therapeutics businesses after going public, and it's been plagued by privacy concerns since hackers accessed the information of nearly 7 million customers in 2023.

In its bankruptcy proceedings, 23andMe required all bidders to comply with its privacy policies, and a court-appointed, independent "Consumer Privacy Ombudsman" will assess the deal, the companies said.

Several lawmakers and officials, including the Federal Trade Commission, had expressed concerns about the safety of consumers' genetic data through 23andMe's sale process. The privacy ombudsman will present a report on the acquisition to the court by June 10.

"We are pleased to have reached a transaction that maximizes the value of the business and enables the mission of 23andMe to live on, while maintaining critical protections around customer privacy, choice and consent with respect to their genetic data," Mark Jensen, 23andMe's board chair, said in a statement.

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