23andMe to be acquired by NY-based Regeneron in $256 million deal
SAN FRANCISCO - Genetics and biotechnology company 23andMe on Monday announced it will be acquired by Regeneron Pharmaceuticals for a purchase price of $256 million.
"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," George D. Yancopoulos, Regeneron's co-founder, board co-chair and president and chief scientific officer said in a statement announcing the deal.
Under the terms of the agreement, the New York-based company will acquire all of 23andMe's assets, including the Personal Genome Service, which allows users to trace their genetic lineage, and the Total Health and Research Services business lines.
The agreement does not include 23andMe's Lemonaid Health subsidiary, which the San Francisco-based company plans to shutter, in accordance with the sale agreement.
"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," Mark Jensen, chair and member of the special committee of the board of directors of 23andMe, said in a statement announcing the sale. "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."
As part of the sale, a court-appointed ombudsman will conduct an examination of the transaction and any potential impact on consumers' privacy if the transaction is approved. The process is being overseen by the U.S. Bankruptcy Court for the Eastern District of Missouri. A hearing to consider approval of the transaction is scheduled for June 17, and the transaction is expected to close in the third quarter of this year.
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Highs and lows
The backstory:
The sale came as the result of a 23andMe filing for Chapter 11 bankruptcy in March of this year. The news raised concerns about the security and future of sensitive genetic data collected from the company's more than 15 million customers.
The company, which was founded in 2006, rose to prominence by offering at-home DNA testing kits that allowed people to explore their ancestry, genetic makeup and potential health risks by submitting a saliva sample to be analyzed.
After going public in 2021, the company briefly had a market value of $6 billion, but its fortunes declined following a 2023 data breach that exposed user information and led to a class-action lawsuit. Since then 23andMe's popularity plummeted.
Anne Wojcicki, the company's then-CEO, resigned after the filing and said she planned to buy the company back and take it private.
Following the bankruptcy announcement, privacy advocates encouraged customers to delete their personal information from the company's database.
California Attorney General Rob Bonta said state law gives customers the right to revoke permissions and request that their saliva samples be destroyed. More than a dozen other states have similar laws.
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How to Delete Genetic Data from 23andMe
What you can do:
- Consumers can delete their account and personal information by taking the following steps:
- Log into your 23andMe account on their website.
- Go to the "Settings" section of your profile.
- Scroll to a section labeled "23andMe Data" at the bottom of the page.
- Click "view" next to "23andMe Data."
- Download your data: if you want a copy of your genetic data for personal storage, choose the option to download it to your device before proceeding.
- Scroll to the "Delete Data" section.
- Click "Permanently Delete Data."
- Confirm your request. You'll receive an email from 3andMe
- Follow the link in the email to confirm your deletion request.
How to Destroy Your 23andMe Test Sample
If you previously opted to have your saliva sample and DNA stored by 23andMe but want to change that preference, you can do so from your account settings page, under "Preferences."
Revoke Permission for Your Genetic Data to be Used for Research
If you previously consented to 23andMe and third-party researchers using your genetic data and sample for research, you may withdraw consent from the account settings page, under "Research and Product Consents."