Bankrupt 23andMe to be bought by pharmaceutical company Regeneron for $256 million
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Genetic testing firm 23andMe is set to be acquired by drug company Regeneron Pharmaceuticals following its bankruptcy in March, the companies announced on Monday, May 19.
Regeneron purchased the pioneering company for $256 million at bankruptcy auction with the intent of using its genomic data to fuel drug discovery, the company said in a Monday statement.
More importantly to consumers who have privacy concerns during the proceedings, the pharmaceutical company promised to adhere to 23andMe's existing privacy policy, saying it will "prioritize the privacy, security and ethical use of 23andMe's customer data."
"As a world leader in human genetics, Regeneron Genetics Center is committed to and 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," Aris Baras, senior vice president and head of the Regeneron Genetics Center, said in a statement.
23andMe will continue to operate as a personal genomics service, which initially gained notoriety as the first company that enabled customers to submit DNA via a home swab and receive a digital map of their ancestry in return.
The company filed for Chapter 11 bankruptcy in March and later agreed to allow a court-appointed overseer to monitor the use of genetic data collected from its 15 million users through the sale. Regeneron has agreed to allow an overseer to review its intended use of that data, as well.
Since a data breach in October 2023 impacted 6.9 million customers, 23andMe has faced scrutiny from customers and lawmakers alike.
In a statement on Monday, 23andMe chair of the Special Committee of the Board of Directors, said the company is "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."
The statement also thanked Regeneron for extending job offers to employees of impacted departments.
The sale is subject to the approval via bankruptcy proceedings and relevant regulatory bodies. It is expected to close in the third quarter.
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