Bankrupt DNA testing company 23andMe was purchased Monday by biotechnology company Regeneron for $256 million.
Both companies insisted the sensitive genetic data provided to 23andMe by 15 million customers would remain in safe hands.
“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,” Regeneron senior vice president Aris Baras said in a press release.
Though 23andMe declared bankruptcy earlier this year, many observers anticipated a bidding war for the company given the potential uses for the genetic data it obtained from millions of people.
Regeneron is known in the industry for medical advances based on genetic data. Its Regeneron Genetics Center boasts its own database of 2.7 million sequenced genomes.
“We believe we can help 23andMe deliver and build upon its mission to help those interested in learning about their own DNA and how to improve their personal health, while furthering Regeneron’s efforts to use large-scale genetics research to improve the way society treats and prevents illness overall,” Regeneron president George Yancopoulos said.
Regeneron said it plans to keep all current 23andMe employees on staff during the transition period. However, the 23andMe telehealth subsidiary Lemonaid Health will be discontinued.
23andMe was once valued at $6 billion, but it had struggled to bridge the gap between possessing people’s genetic data and turning a profit as a business. It also didn’t help when hackers breached the company’s security system in 2023 and stole data from an estimated 7 million people.
Regeneron’s deal to acquire 23andMe is still subject to approval in the U.S. Bankruptcy Court for the Eastern District of Missouri. A hearing in the case was scheduled for June 17.
