Regeneron to Buy 23andMe for $256M Amid Growing Data Privacy Concerns

Biotechnology giant Regeneron Pharmaceuticals has emerged as the successful bidder in the bankruptcy auction for genetic testing pioneer 23andMe, offering $256 million for the majority of the company’s assets.

Announced Monday, the deal would transfer 23andMe’s consumer genomics business and valuable biobank containing genetic data from millions of customers to Regeneron, pending bankruptcy court and regulatory approvals expected in the third quarter of 2025.

The acquisition comes as consumers and privacy advocates raise concerns about the fate of sensitive genetic information collected over years of operation.

The planned acquisition represents a dramatic turn for 23andMe, once valued at over $6 billion after going public via SPAC in 2021.

Under the agreement, Regeneron will acquire the Personal Genome Service, Total Health and Research Services business lines, along with 23andMe’s extensive biobank containing genetic data from consenting customers.

Regeneron intends to operate 23andMe as a wholly owned subsidiary and continue its consumer genome services without interruption.

“We are pleased to reach an agreement with a science-driven partner that maintains our team and helps ensure our mission will carry forward,” said Joe Selsavage, Interim CEO of 23andMe.

Notably, the deal excludes 23andMe’s Lemonaid Health telemedicine business, which will be handled separately in the bankruptcy proceedings.

The transaction marks a significant consolidation within the genetics industry, where consumer testing companies have struggled to find sustainable business models.

Data Privacy Safeguards Take Center Stage

Addressing immediate concerns about the privacy of customer genetic information, Regeneron has emphasized its commitment to protecting sensitive data.

The company will work with an independent, court-appointed Customer Privacy Ombudsman to review data usage plans and security controls.

Regeneron has pledged to comply with existing 23andMe privacy policies and applicable laws regarding customer data.

“Regeneron Genetics Center is committed to and has a proven track record of safeguarding the genetic data of people across the globe,” said Aris Baras, Senior Vice President and Head of the Regeneron Genetics Center.

The company points to its experience managing deidentified genetic sequences from nearly three million research participants as evidence of its data stewardship capabilities.

Genetic Research Capabilities

For Regeneron, the acquisition significantly bolsters its genetic research infrastructure, which already includes partnerships that have sequenced nearly three million exomes linked to electronic health records.

The company has used genetics-guided approaches to develop treatments for conditions ranging from blindness and allergic diseases to certain cancers.

“Regeneron was one of the first biotech companies to bet its future on the power of DNA,” noted George D. Yancopoulos, co-Founder and Chief Scientific Officer of Regeneron.

The company views 23andMe’s database as valuable for accelerating drug discovery while continuing to provide consumer genomics services.

Industry analysts see the acquisition as further validation of the pharmaceutical value of large-scale genetic databases, despite challenges in the direct-to-consumer testing market.

The transaction underscores how genetic information has become a crucial resource in modern drug development, even as companies face increasing scrutiny over data privacy practices.

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