Regeneron Acquires 23andMe in $256 Million Deal: A New Chapter in Genomic Data Utilization
In a strategic move within the biotech landscape, Regeneron Pharmaceuticals has announced that it will be acquiring the genetic testing pioneer 23andMe for a sum of $256 million, following the company’s recent bankruptcy auction. This acquisition will grant Regeneron access to 23andMe’s extensive genomics services and its valuable repository of personal and genetic data from 15 million customers.
Regeneron aims to leverage this wealth of customer data to advance its drug discovery initiatives, while emphasizing its commitment to prioritize the privacy, security, and ethical usage of the customer data acquired from 23andMe.
23andMe faced significant challenges earlier this year, filing for bankruptcy protection in March after a substantial data breach compromised the personal and genetic information of approximately 7 million customers. Additionally, the company’s declining stock price reflected a lack of consumer interest in its DNA testing kits. Following these events, founder and CEO Anne Wojcicki stepped down amid the turmoil.
After the bankruptcy filing, federal authorities were tasked with overseeing the asset sale process, leading to concerns regarding the potential mishandling of customer data. Regeneron has reassured stakeholders that it intends to uphold compliance with 23andMe’s existing data privacy policies as part of the acquisition agreement.
With the bankruptcy court set to review the acquisition on June 17, Regeneron has clarified that it will not be taking on 23andMe’s Lemonaid Health division, signaling a focused direction toward enhancing its genomic capabilities through this strategic acquisition.
As these two entities join forces, the implications for genomic research and the ethical management of genetic data are profound, marking a significant shift in the landscape of personal genetics and biotechnology.