Regeneron buys 23andMe's assets for $256 million after bankruptcy

In March 2025, the genetic testing company 23andMe filed for Chapter 11 bankruptcy protection in the United States, citing the need for a court-approved reorganization. Following this, Regeneron Pharmaceuticals participated in a bankruptcy auction, emerging as the winner with a bid of $256 million to acquire substantially all of 23andMe's assets. The transaction includes 23andMe's personal genome service and total health and research services, but does not include the telehealth subsidiary, Lemonaid Health, which is slated for closure. As part of the agreement, Regeneron has committed to comply with 23andMe's privacy policies regarding customer data. The deal raised concerns among privacy advocates and consumers, particularly regarding the handling of genetic data. An independent consumer privacy ombudsman has been appointed to assess the acquisition's impact on consumer privacy and will submit a report to the court. Regulatory bodies, including the Federal Trade Commission, have shown interest in ensuring that genetic data is safeguarded during the acquisition process. Regeneron asserts that they will implement robust security controls to protect customer data in line with existing privacy policies. Anne Wojcicki, the co-founder and CEO of 23andMe, resigned from her role as part of the restructuring process, although she will remain on the board. 23andMe had an uncertain future prior to the sale, struggling to establish a profitable business model since going public in 2021. The company faced multiple setbacks, including a significant data breach that raised alarms about consumer data protection. Pending approval from the U.S. Bankruptcy Court, the deal is expected to close in the third quarter of 2025. Regeneron plans to retain all of 23andMe's employees and maintain continuity in providing consumer genome services. This acquisition represents a pivotal moment for both Regeneron and 23andMe, with hopes that the partnership will lead to advancements in personal health through genetic understanding.