Mon, 19 May 2025

Mon, 19 May 2025 Struggling DNA testing firm 23andMe to be bought for $256m

It said new buyers Regeneron had committed to protect user data as part of the deal.
23andMe, a DNA testing firm, has been acquired by Regeneron Pharmaceuticals for $256m (£192m) as part of its bankruptcy proceedings. The deal comes two months after 23andMe filed for bankruptcy protection in the US and marks a significant shift in the company's mission. Regeneron will acquire nearly all of 23andMe's assets, with its subsidiary Lemonaid Health being wound down. 23andMe will continue to operate as a wholly-owned unit of Regeneron, which plans to use the data for drug development. Regeneron has committed to complying with 23andMe's privacy policies and protecting user data. The acquisition follows concerns raised by state attorneys general in the US over potential unscrupulous buyers exploiting customer data. 23andMe agreed to have an ombudsman oversee the protection of user data as part of its bankruptcy proceedings. The deal was made through auction last week, with 23andMe's board chairman Mark Jensen saying it would "maximize the value of the business" while maintaining critical protections around customer privacy. However, some experts question whether Regeneron's profit-driven mission will align with the company's original non-profit goals. This acquisition marks a significant shift for 23andMe, which has struggled amid weak demand for its testing kits and failed to redefine its business model. The company went public in 2021 but never turned a profit, and last year it was hit by a data breach that exposed the genetic data of millions of users.
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