Regeneron to Buy 23andMe Out of Bankruptcy for $256 Million
Regeneron Pharmaceuticals is buying 23andMe out of bankruptcy for $256 million, raising privacy concerns as the drugmaker takes control of the genetic data of millions of individuals who had once willingly handed it over.
Regeneron said Monday that it would acquire the once-sizzling DNA-testing startup's signature Personal Genome Service, its Total Health and Research Services business lines and its biobank of customers' genetic samples and data.
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All of 23andME's consumer genome services are to continue uninterrupted, Regeneron said. The acquisition is expected to close in the third quarter.
The sale gives Regeneron a virtually unprecedented repository of human genetic information that has been building since 23andMe's DNA-testing kits made a big splash with customers years ago.
Regeneron said it is prepared to tell a court-appointed ombudsman what it plans to do with 23andMe's consumer data and detail the privacy programs and security controls in place for it. The company said it would remain compliant with 23andMe's consumer privacy policies and applicable laws related to the treatment of customer data
'We assure 23andMe customers that we are committed to protecting the 23andMe dataset with our high standards of data privacy, security and ethical oversight and will advance its full potential to improve human health,' said Aris Baras, a senior vice president at Regeneron.
23andMe went public in 2021 and briefly saw its valuation top $6 billion but tumbled into bankruptcy in March after years of profitability struggles.
After the company filed for chapter 11 protections, California Attorney General Rob Bonta put out a statement warning constituents to have their genetic information deleted from 23andMe's database and to have any samples of genetic material held by the company destroyed.
Write to Dean Seal at dean.seal@wsj.com
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