May 18, 2025 – BlogHear.com
DNA testing pioneer 23andMe has officially announced its acquisition by Regeneron Pharmaceuticals for $256 million, just two months after filing for bankruptcy protection in the United States. The agreement, which was finalized through an auction as part of the bankruptcy proceedings, allows Regeneron to absorb nearly all of 23andMe’s assets.
Under the deal, 23andMe will operate as a wholly-owned subsidiary of Regeneron, which plans to use the company’s genetic data to support its drug development efforts. However, Regeneron has agreed to honor 23andMe’s existing privacy policies and maintain strict data security controls—an issue that has drawn scrutiny from state officials and consumers alike.
Data Privacy Still in Focus
In response to mounting concerns from several US state attorneys general, 23andMe recently agreed to the appointment of an independent ombudsman to oversee data protection. This came after fears that sensitive genetic information could be misused if acquired by an unscrupulous third party during bankruptcy proceedings.
Mark Jensen, 23andMe’s board chairman, emphasized the importance of this safeguard:
“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.”
The privacy policy at the center of the controversy allows for user data to be sold or transferred in the event of a bankruptcy, acquisition, or reorganization—a clause that sparked concerns over genetic information being passed to new owners.
From Billion-Dollar Valuation to Bankruptcy
Founded in 2006 by Anne Wojcicki, 23andMe was once a rising star in biotech, backed by endorsements from celebrities such as Oprah Winfrey, Eva Longoria, and Snoop Dogg. The company went public in 2021 with a valuation topping $6 billion, but it struggled to turn a profit.
Attempts to pivot toward a subscription model and drug development did not gain traction. The company’s fortunes took a significant blow in 2023, when a data breach exposed sensitive information about millions of users. Although 23andMe claimed DNA records weren’t compromised, hackers accessed family trees, birth years, and geographic locations using outdated passwords.
The incident led to a class-action lawsuit settlement and severe reputational damage. Just months later, the company laid off 200 employees, amounting to 40% of its workforce.
Wojcicki, who stepped down as CEO in March 2025, had sought to take the company private and was reportedly hesitant about selling to an outside party.
A Complicated Legacy
Despite 23andMe’s pledge to secure user data, attorneys general from multiple states advised users to delete their genetic information from the company’s database when it filed for bankruptcy in March. Privacy advocates continue to call for tighter regulations on how companies handle genetic data, especially during mergers and acquisitions.
Regeneron’s acquisition of 23andMe is expected to close in the coming months, pending court approval and regulatory oversight.
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