23andMe To Be Sold in Bankruptcy: What It Means for Your DNA Data
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Biotech giant Regeneron announced Monday that it would acquire DNA testing company 23andMe for $256 million following a bankruptcy auction. The deal includes access to 23andMe's massive personal and genetic data trove from more than 15 million customers.
Regeneron, whose experimental antibody cocktail was used on President Donald Trump during his COVID-19 illness, says it will use the data to accelerate drug development.
Newsweek contacted Regeneron via email for further comment on the acquisition.
Why It Matters
The acquisition gives Regeneron, a major player in the biotech industry, access to one of the largest databases of consumer DNA. While the deal promises advancements in personalized medicine and drug discovery, it raises concerns about protecting sensitive genetic data, especially after a recent 23andMe breach compromised millions of user profiles.
Headquarters of 23andMe, a personal genomics and biotechnology company headquartered in Mountain View, California, that provides rapid genetic testing.
Headquarters of 23andMe, a personal genomics and biotechnology company headquartered in Mountain View, California, that provides rapid genetic testing.What To Know
The $256 million deal allows Regeneron to acquire nearly all 23andMe's core business assets, including its Personal Genome Service, Total Health and Research Services divisions. The struggling Lemonaid Health subsidiary will be excluded and wound down separately.
Regeneron pledged to process all personal data according to privacy policies, and user consent is already in place. A consumer privacy ombudsman will review the deal's impact on customers and present a report to the court by June 10.
23andMe filed for Chapter 11 bankruptcy earlier this year after a data breach exposed the genetic information of 7 million customers. The company made compliance with its privacy policies a requirement for all auction bidders, hoping to ease public fears about misuse or resale of personal data.
Regeneron has used genomic data to develop breakthrough treatments for cancer, infectious diseases and chronic illnesses. The company said it would apply its "high standards for safety and integrity" to the 23andMe database and services.
The transaction requires approval from the U.S. Bankruptcy Court for the Eastern District of Missouri, a green light under federal antitrust laws and other closing conditions. A hearing is scheduled for June 17, and the companies expect the deal to close in the third quarter.
What People Are Saying
George D. Yancopoulos, M.D. Ph.D., co-Founder, board co-chair, president and chief scientific officer of Regeneron, in a Monday press 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."
Mark Jensen, chair and member of the Special Committee of the Board of Directors of 23andMe, in a Monday press release: "We are grateful to Regeneron for offering employment to all employees of the acquired business units, which will allow us to continue our mission of helping people access, understand and gain health benefits through greater understanding of the human genome."
What Happens Next
If approved in court, Regeneron will take control of 23andMe's core operations later this year, ushering in a new phase for one of the most prominent names in consumer genetics.
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