23andme Finds $256m Buyer In Regeneron After Chapter 11 Filing

The drugmaker will preserve 23andMe’s consumer genetics arm in the $256 million deal, citing a shared mission to improve human health and wellness

Regeneron Pharmaceuticals Inc. is acquiring the assets of genetic testing firm 23andMe Inc. for $256 million, marking a swift end to the genetics and biotechnology company’s search for a buyer following its Chapter 11 filing in March.

The transaction includes 23andMe’s Personal Genome Service, Total Health and Research Services units but excludes Lemonaid Health, a telehealth subsidiary the company plans to sunset. A court hearing to consider approval of the transaction is scheduled for June 17, and the deal is expected to close in the third quarter.

“We are 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,” 23andMe’s special committee chair and member Mark Jensen said.

23andMe co-founder Anne Wojcicki stepped down as CEO in March in an effort to pursue 23andMe as an independent buyer, though she remained on the board. Her bid came after the company’s special committee rejected an earlier acquisition proposal, a move that followed the collective resignation of all seven board members last September. The directors cited strategic differences after Wojcicki signaled interest in taking the company private

23andMe confirmed that Regeneron has extended employment offers to all staff within the acquired business units.

“Regeneron is a science-driven, patient-focused biotechnology company that understands the power of genetic research to improve the lives of individuals, as well as the way society treats and prevents illness as a whole,” Regeneron’s co-founder and chief scientific officer, George D. Yancopoulos, M.D. Ph.D said. “When we opened our labs in New York State more than three decades ago, we bet our company’s future on the power of DNA, fueling our drug discovery efforts so as to deliver some of the world’s leading and most innovative medicines, including treatments to prevent blindness, for allergic diseases from asthma to atopic dermatitis, for several forms of cancer and even for Ebola and COVID-19.”

Consumer privacy has loomed over 23andMe since October of 2023, when a cyberattack exposed the data of roughly 6.9 million people. The company later settled a $30 million lawsuit tied to the breach last fall. 23andMe required all bidders to comply with its privacy policies and applicable law as part of the court-supervised sale process. A court-appointed, independent Consumer Privacy Ombudsman will also review the deal’s potential impact, if any, on consumer privacy and submit a report to the court by June 10.

Yancopoulos stated that Regeneron has a proven track record of protecting personal genetic data and will apply the same standards of safety and integrity to 23andMe’s customers.

“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,” he added.

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