- Tuesday, May 20, 2025
New York-based Regeneron will buy the bankrupt DNA testing company 23andMe, which has struggled with falling sales following a 2023 data breach
By: India Weekly
US BIOTECH company Regeneron Pharmaceuticals has announced that it will buy the troubled DNA testing company 23andMe out of bankruptcy for $256 million.
For New York-based Regeneron, this deal will provide access to DNA records of millions of clients.
Regeneron was named the successful bidder in the bankruptcy auction for 23andMe, which has struggled with falling sales following a 2023 data breach that saw nearly seven million accounts affected.
Hackers gained access to family trees, birth years, and geographic locations, but the company maintains that the data stolen did not include DNA records.
Regeneron CEO George Yancopoulos described his enterprise as “a science-driven, patient-focused biotechnology company that understands the power of genetic research to improve the lives of individuals.”
He felt this transaction would further their “efforts to use large-scale genetics research to improve the way society treats and prevents illness overall.”
The companies said in a joint press release that Regeneron will detail its data safeguarding programs for a review by a court-appointed privacy ombudsman.
Silicon Valley-based 23andMe, which went public in 2021 and was once valued at some $6 billion, sells a mail-back saliva test to determine ancestry or certain health-related genetic traits for less than $200.
At its height, a few years ago, the DNA testing craze saw millions of consumers rushing to discover their ancestry and health information with tests from 23andMe becoming popular holiday gifts.
The company received high-profile endorsements from celebrities including Oprah Winfrey, Eva Longoria and Snoop Dogg.
However, it struggled with its business model, which relied on a single-use product.
It has never turned a profit, and side ventures to expand its business into health care and the biotech industries failed.
In March this year, the company filed for Chapter 11 bankruptcy protection.
23andMe said at the time it rejected a takeover offer from its co-founder and former CEO Anne Wojcicki.
The Regeneron transaction must be approved by a US bankruptcy court, which has scheduled a hearing for June 17.
The transaction is expected to close in the third quarter.
