Regeneron Secures Purchase of 23andMe from Bankruptcy State
In a significant turn of events, Regeneron Pharmaceuticals has emerged as the successful bidder in a court-run auction to purchase DNA testing firm 23andMe out of bankruptcy. The deal, subject to court and regulatory approvals, marks a new chapter for the personal genomics industry and drug development.
Founded by Anne Wojcicki in 2006, 23andMe built a brand synonymous with personal DNA testing. Initially, the company offered saliva-based kits for ancestry and health insights, and it aimed to expand its DNA testing services and leverage genetic data for health research and drug development.
However, 23andMe faced numerous challenges over the years. Declining demand for its consumer tests eroded the company's financial health and share price, leading to a significant drop in its stock price from a high of $353 in early 2021 to as low as $1.27 in early March 2025. These financial troubles, coupled with a data breach in 2023 that compromised sensitive information of around 7 million customers, led to investigations by data protection regulators and multiple lawsuits. Despite these challenges, the company filed for Chapter 11 bankruptcy in March 2025.
Regeneron, on the other hand, has made significant strides in the field of genomics. Its Regeneron Genetics Center, launched in 2013, has discovered over two dozen novel drug targets by analysing its genome sequencing database. Some of the gene mutations discovered are associated with lower risks of obesity and liver disease.
George Yancopoulos, Regeneron's co-founder and chief scientist, believes Regeneron can help 23andMe deliver and build upon its mission to help individuals learn about their DNA and improve their personal health. Regeneron plans to mine the genetics data collected by 23andMe to discover new drug targets.
The acquisition includes 23andMe's personal genome service, health and research service, and biobank. Regeneron will pay $256 million to acquire "substantially all" of 23andMe's assets. The purchase does not include the telehealth business Lemonaid Health, which 23andMe will wind down.
Regeneron also plans to offer jobs to all employees at the business units it acquires from 23andMe. George Yancopoulos expressed his excitement about the opportunity to work with the talented team at 23andMe and continue their mission to help individuals learn about their DNA and improve their personal health.
The sale of 23andMe to Regeneron is a quiet end for a company that was once worth $6 billion. However, it presents an exciting new beginning for the personal genomics industry and drug development. An ombudsman appointed by the bankruptcy court will review the transaction to assess its potential impact on the privacy of individuals who previously used 23andMe to sequence their genome. A report from this review is due to the court by June 10, and a hearing is set for June 17.
The acquisition by Regeneron is expected to close in the third quarter, assuming all necessary approvals are obtained. It is a significant step forward for both companies and the broader genomics industry, and it underscores the potential of personal genomics data in drug development and personalised medicine.
- The acquisition by Regeneron of 23andMe's assets, worth $256 million, encompasses the personal genome service, health and research service, and biobank.
- Regeneron, known for its advancements in genomics, plans to utilize 23andMe's genetic data to discover new drug targets.
- The purchase of 23andMe by Regeneron will enable Regeneron to offer jobs to all employees of the business units it acquires, as expressed by George Yancopoulos.
- Amidst the news of 23andMe's sale to Regeneron, the business world is observing the potential impact on privacy, as an ombudsman appointed by the bankruptcy court will review the transaction.
- The sale of 23andMe to Regeneron is a significant event in the genomics industry, representing a new chapter for personal genomics and drug development, and underscoring the value of personal genomics data in medicine.
