Mirror Review
May 20th, 2025
- Regeneron Pharmaceuticals, Inc. has emerged as the successful bidder in the bankruptcy auction for substantially all of 23andMe Holding Co.’s assets.
- This acquisition, valued at $256 million, marks a notable turn for the iconic DNA-testing company, which had seen its valuation drop from a peak of $6 billion in 2021.
- Regeneron to buy bankrupt 23andMe, including its Personal Genome Service®, Total Health and Research Services, and Biobank.
- The deal, subject to bankruptcy court and regulatory approvals, is expected to close in the third quarter of 2025.
Here Are 10 Key Insights Into The Regeneron Purchase Of 23andMe:
1. A Strategic Acquisition for Genetic Research
Regeneron, a leading biotechnology company, views this acquisition as a way to strengthen its ongoing leadership in genetics-guided research and drug development to help people with serious diseases.
George D. Yancopoulos, M.D. Ph.D., co-Founder, Board co-Chair, President and Chief Scientific Officer of Regeneron, highlighted the company’s long-standing commitment to DNA-fueled drug discovery.
2. Continued Operation of 23andMe Services
As part of the deal, Regeneron is acquiring 23andMe’s Personal Genome Service® and related assets.
The good news for customers is that 23andMe’s consumer genome services will continue without disruption.
Once the acquisition is complete, 23andMe will operate as a wholly owned subsidiary of Regeneron Pharmaceuticals, Inc., either directly or indirectly.
3. Prioritizing Customer Data Privacy and Security
Data privacy is a major focus, especially after 23andMe’s 2023 data breach that affected millions.
Regeneron has committed to maintaining the privacy, security, and ethical use of all customer data.
The company also confirmed that it will comply with 23andMe’s existing privacy policies and all applicable laws to protect personal genetic information.
4. Independent Oversight for Data Use
As the successful bidder, Regeneron is prepared to detail the intended use of customer data and the privacy programs and security controls in place for review by a court-appointed, independent Customer Privacy Ombudsman.
This ombudsman will present a report on the acquisition to the court by June 10, 2025.
5. Consent for Research Remains Paramount
Regeneron has affirmed that it “will not use any personal data in a manner inconsistent with the purposes for which it was shared with 23andMe” and that “personal data will not be used for research without consent”.
Regeneron noted that 23andMe had indicated approximately 84% of its customers had opted to allow research using their genetic information.
6. Vast Biobank and Data for Drug Discovery
Regeneron also intends to acquire 23andMe’s Biobank and associated assets.
Aris Baras, MD, Senior Vice President and Head of the Regeneron Genetics Center®, emphasized, “Since 2013, the Regeneron Genetics Center has sequenced the genetic information of nearly three million people in research studies, using this deidentified data to make meaningful discoveries at speed and scale”.
Moreover, Regeneron aims to use 23andMe and its data for $256 million to further its large-scale genetics research.
7. Exclusion of Lemonaid Health
Regeneron’s purchase does not include 23andMe’s Lemonaid Health business. 23andMe plans to wind down this telehealth subsidiary.
8. Employee Retention and Mission Continuity
Regeneron has offered employment to all staff of the acquired business units.
Joe Selsavage, Interim Chief Executive Officer of 23andMe, stated, “We are pleased to reach an agreement with a science-driven partner that maintains our team and helps ensure our mission will carry forward”.
Mark Jensen, Chair of 23andMe’s Special Committee, added that the transaction “maintains critical protections around customer privacy, choice and consent with respect to their genetic data”.
9. Addressing Past Financial and Security Challenges
23andMe had been struggling with weak demand for its ancestry testing kits and had faced a data breach in 2023.
Furthermore, the company filed for Chapter 11 bankruptcy in March to facilitate a sale process. This Asset Purchase Agreement with Regeneron provides a path forward.
10. Shared Vision for Improving Human Health
Dr. George D. Yancopoulos articulated the shared vision: “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”.
Aris Baras, MD, added, “We share 23andMe’s founding vision of the power of genetics and data and the health benefits to individuals and society in understanding the human genome”.
Conclusion
The acquisition of 23andMe by Regeneron Pharmaceuticals will bring new hope for breakthroughs in health and research, especially with 23andMe’s massive DNA database.
What matters most now is how well Regeneron protects users’ data and builds on 23andMe’s original mission. Let’s see how this new chapter unfolds in the coming months.
