On Monday, pharmaceutical company Regeneron announced its intention to acquire genetic testing firm 23andMe for $256 million, an agreement reached through a bankruptcy auction. This acquisition grants Regeneron access to 23andMe’s genomic services and a substantial database consisting of personal and genetic information from 15 million customers. The company aims to leverage this data for enhanced drug discovery while pledging to prioritise the privacy, security, and ethical utilisation of the information gathered.
23andMe, which filed for bankruptcy protection in March, faced significant challenges following a data breach that compromised the private and genetic information of 7 million customers earlier in the year. The company’s stock took a dramatic hit and fell close to zero amid declining consumer interest in its DNA testing kits. Following these troubles, founder and CEO Anne Wojcicki stepped down.
In light of 23andMe’s bankruptcy, a federal court has been appointed to oversee the asset sale, raising concerns that sensitive customer data might be acquired by conflicting interests or unethical entities. In its announcement, Regeneron reassured stakeholders that, as the designated buyer in the bankruptcy proceedings, it is committed to adhering to 23andMe’s established privacy policies and regulations regarding customer data.
The bankruptcy court is scheduled to review Regeneron’s acquisition on June 17. It is worth noting that Regeneron does not plan to include 23andMe’s Lemonaid Health business in this deal.
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