Regeneron Acquires Bankrupt DNA Firm 23andMe for $256 Million Amid Privacy Concerns

DNA testing company 23andMe has agreed to be acquired by Regeneron Pharmaceuticals for $256 million following its bankruptcy filing in the United States. Once valued at over $6 billion, 23andMe struggled with falling demand for its testing kits, unsuccessful subscription models, and a failed transition to drug development. In 2023, the company suffered a significant data breach, exposing sensitive personal data of millions of users, which later led to legal settlements and workforce reductions.

The acquisition deal includes commitments from Regeneron to uphold 23andMe’s privacy standards, and a court-appointed ombudsman will oversee user data protection. Despite this, privacy advocates remain cautious, given Regeneron’s interest in genetic data for pharmaceutical research, a shift from 23andMe’s original consumer-oriented mission. Experts argue this transition may now make the company’s profit-driven motives more apparent to users.

The agreement, reached through an auction during bankruptcy proceedings, will result in 23andMe continuing as a wholly-owned subsidiary of Regeneron. Meanwhile, its telehealth arm Lemonaid Health will be shut down. As concerns linger over genetic data misuse, attorneys general had previously advised users to delete their information from the company’s databases.