23andMe sells gene-testing business to DNA drug maker Regeneron
Bankrupt genetic-testing firm 23andMe agreed to sell its data bank, which once contained DNA samples from about 15 million people, to the drug developer Regeneron Pharmaceuticals for $256 million.
The sale comes after a wave of customers and government officials demanded that 23andMe protect the genetic data it had built up over the years by collecting saliva samples from customers.
Regeneron pledged to comply with 23andMe's privacy policy, which allows customers to have their personal information deleted upon request.
'We have deep experience with large-scale data management,' Regeneron co-founder George D. 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 filed for bankruptcy in March after failing to generate sustainable profits by providing medical and ancestry-related genetic testing to more than 15 million customers.
About 550,000 people had subscribed to the company's two primary services, which hasn't been enough to keep the company afloat. One of those services, Lemonaid Health, was not part of the sale and will be wound down, 23andMe said in a statement.
As part of 23andMe's Chapter 11 bankruptcy, a judge approved the appointment of a privacy ombudsman to monitor the sale process and ensure compliance with privacy policies related to the genetic material submitted by customers.
That material, and the genetic data it produced, was 23andMe's most valuable asset. The company has said any buyer must comply with current privacy protections and federal regulations.
Regeneron said it will continue to run 23andMe's personal genomic services once the sale closes. The judge overseeing the bankruptcy must approve the sale before it can be completed.
In the months leading up its bankruptcy, 23andMe tried to attract a buyer while struggling to end a class-action lawsuit related to a 2023 data breach that gave hackers access to customer information. The company will try to resolve those claims as part of the bankruptcy.
The case is 23andMe Holding Co., number 25-40976, in the US Bankruptcy Court for the Eastern District of Missouri.
Church and Smith write for Bloomberg.
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