Regeneron Pharmaceuticals (NASDAQ: REGN) will acquire bankrupt genetic-testing firm 23andMe in a court-approved auction for $256 million, the companies announced on Monday.
The all-cash deal, expected to close in Q3, positions Regeneron to control a trove of genomic data from 15 million customers who purchased 23andMe’s saliva-based DNA kits.
Regeneron has pledged to honor 23andMe’s existing privacy policies and “applicable laws with respect to the use of customer data,” and said it is “ready to detail its intended use of the data to a court-appointed overseer.” That overseer, established last month, was a condition imposed after lawmakers warned that millions of customers’ genetic profiles “could be sold to unscrupulous buyers” during the March bankruptcy proceedings.
Under the purchase agreement, Regeneron will absorb all of 23andMe except its telehealth arm, Lemonaid Health, which will be wound down. Once completed, 23andMe will operate as a wholly owned subsidiary, retaining its direct-to-consumer model but reporting up through Regeneron’s corporate structure.
However, analysts and privacy advocates caution that the deal could present conflicts of interest. As a drug developer, Regeneron may leverage genetic insights for targeted therapeutics—potentially blending consumer-origin data with proprietary research pipelines. Critics argue this vertical integration could dilute informed consent: customers who submitted DNA for ancestry or health-reporting services did not explicitly agree to their data underpin new drug development.
Regeneron was founded in 1988 in New York to harness cutting-edge monoclonal antibody and genetic engineering technologies. Over the past three decades the company has become best known for blockbuster biologics—most notably Eylea for retinal diseases and Dupixent for asthma and atopic dermatitis. Recently, Regeneron gained global recognition for its Regen-cov antibody cocktail against COVID-19.
23andMe’s struggles—weak demand for ancestry tests compounded by a 2023 breach exposing millions of genetic records—led the company to filing for bankruptcy earlier this year.
Information for this story was found via Reuters and the sources mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
