81°
The agreement to buy 23andMe was announced in a news release on Monday, May 19. It comes two months after 23andMe filed for Chapter 11 bankruptcy.
Under the deal, Westchester County, New York-based Regeneron will take over 23andMe's personal genome service, total health, and research services. The telehealth brand Lemonaid Health will be shut down and Regeneron has offered to employ Lemonaid workers in other parts of the company.
A hearing to approve the deal is set for Tuesday, June 17, in the U.S. Bankruptcy Court for the Eastern District of Missouri. If approved, the transaction is expected to close in the summer.
The deal was also reached after an October 2023 data breach exposed the data of nearly seven million Americans.
"We are pleased to have reached a transaction that maximizes the value of the business and enables the mission of 23andMe to live on, while maintaining critical protections around customer privacy, choice and consent with respect to their genetic data," said 23andMe board chair Mark Jensen. "We are grateful to Regeneron for offering employment to all employees of the acquired business units, which will allow us to continue our mission of helping people access, understand and gain health benefits through greater understanding of the human genome."
Regeneron president and chief scientific officer Dr. George Yancopoulos said 23andMe's focus on DNA research makes the deal a natural fit.
"When we opened our labs in New York state more than three decades ago, we bet our company's future on the power of DNA, fueling our drug discovery efforts so as to deliver some of the world's leading and most innovative medicines, including treatments to prevent blindness, for allergic diseases from asthma to atopic dermatitis, for several forms of cancer, and even for ebola and COVID-19," Dr. Yancopoulos said. "Through our Regeneron Genetics Center, we have a proven track record of safeguarding personal genetic data, and we assure 23andMe customers that we will apply our high standards for safety and integrity to their data and ongoing consumer genetic services.
"We believe we can help 23andMe deliver and build upon its mission to help people learn about their own DNA and how to improve their personal health, while furthering Regeneron's efforts to improve the health and wellness of many.”
The sale follows a tumultuous stretch for the California-based DNA testing firm. Co-founder Anne Wojcicki resigned in March and attempted to bid for the company independently, but her offer was rejected.
The company, once valued at $6 billion, had dropped to a market cap of just $25 million before the bankruptcy filing. Despite financial losses and the data breach, 23andMe said it will continue operating during the sale process, with no changes to how it handles or stores customer data.
Attorneys general in Connecticut and California have urged customers to consider deleting their data or revoking permissions amid ongoing investigations.
"23andMe collected incredibly sensitive genetic data from millions of Americans, and their inability to protect that data irreparably harmed their business," Connecticut AG William Tong said in March. "Regardless of this bankruptcy filing, they need to honor their promises to protect consumer privacy and the security of the data they maintain."
A court-appointed privacy ombudsman will review the deal and submit a report by Tuesday, June 10.
Click here to follow Daily Voice Mechanicsville and receive free news updates.
