Key points from article :
Struggling DNA testing company 23andMe is set to be acquired by Regeneron Pharmaceuticals for $256 million, following its recent filing for bankruptcy protection in the U.S. The deal will see Regeneron take over nearly all of 23andMe’s assets and wind down its Lemonaid Health subsidiary. Under the agreement, 23andMe will continue operating as a wholly owned unit, and Regeneron plans to use its vast genetic database to support drug development.
Privacy concerns have been central to the acquisition. The deal includes a commitment from Regeneron to uphold 23andMe’s existing privacy policies, amid scrutiny from several U.S. state attorneys general. These officials had pushed for a court-appointed overseer of user data, particularly after a 2023 data breach that compromised the personal details of millions of users. Although DNA records were reportedly not accessed, the breach revealed vulnerabilities in the firm’s data protection.
Founded in 2006 by Anne Wojcicki, 23andMe initially gained fame with celebrity endorsements and the promise of democratizing genetic health insights. However, it never turned a profit and struggled to pivot from consumer DNA testing to drug development. After going public in 2021 at a $6 billion valuation, the firm saw a sharp decline, compounded by poor subscription uptake and the fallout from the data breach.
Experts like Dr. Jennifer King of Stanford’s Institute for Human-Centered Artificial Intelligence suggest that Regeneron’s takeover makes the company’s profit motives more transparent. While 23andMe had marketed itself as a mission-driven organization, its integration into a pharmaceutical company makes its commercial goals clearer—raising new questions about how genetic data will be used in the future. The acquisition was finalized through a bankruptcy auction, and the firm has declined further comment.
