By Alan Fink, Senior Correspondent
Biotech giant Regeneron Pharmaceuticals has agreed to acquire 23andMe for $256 million in a deal that follows the genetic testing company’s recent filing for bankruptcy. Once celebrated as a pioneering force in consumer genomics and valued at over $6 billion, 23andMe’s steep decline has culminated in this strategic buyout, which underscores the continued value of genetic data in the evolving healthcare landscape.
The acquisition is subject to final approval by a U.S. bankruptcy court, with a scheduled hearing on June 17. In light of growing concerns over genetic privacy, the deal will be closely monitored by a court-appointed consumer privacy ombudsman tasked with safeguarding sensitive customer data during the transition.
The Rise and Fall of 23andMe
Founded in 2006 by Anne Wojcicki and two other co-founders, 23andMe revolutionized the personal genomics industry by offering direct-to-consumer DNA testing kits. Customers could learn about their ancestry, genetic traits, and potential health risks from a simple saliva sample.
The company gained widespread popularity and reached a peak valuation of $6 billion in 2021, following a high-profile merger with a special purpose acquisition company (SPAC) sponsored by Richard Branson. However, the glow of early success began to dim as the market matured.
Facing increased competition, reduced demand, and internal challenges, 23andMe struggled to maintain profitability. The company invested heavily in biotech R&D and telehealth services—such as the acquisition of Lemonaid Health—but failed to gain sufficient market traction. Compounding these challenges was a major data breach in 2023, which eroded public trust and drew scrutiny from regulators.
By March 2025, the company filed for Chapter 11 bankruptcy protection, and longtime CEO Anne Wojcicki stepped down, marking a turning point in its corporate trajectory.
What Regeneron Gains
Regeneron’s acquisition includes 23andMe’s core consumer-facing genetic testing operations, research database, and biobank. These assets contain anonymized data from over 15 million customers, representing one of the world’s most comprehensive repositories of human genomic information.
Excluded from the acquisition is Lemonaid Health, 23andMe’s telehealth division, which is set to be wound down. The genetic data and consumer platform, however, align closely with Regeneron’s strategic interest in expanding its capabilities in precision medicine and genomic research.
This move allows Regeneron to deepen its portfolio of human genetic insights, aiding in drug discovery, patient stratification, and potentially more personalized treatments across a variety of disease areas.
Privacy Concerns and Regulatory Oversight
As part of the court-supervised sale process, a privacy ombudsman will ensure that customer data is handled responsibly. Regeneron has pledged to honor 23andMe’s existing privacy agreements and stated that it will not use individual data for new purposes without explicit consent.
The arrangement underscores the increasing importance of ethical stewardship of genetic data, especially amid heightened regulatory scrutiny and public sensitivity around personal privacy.
Looking Forward
If approved, the transaction is expected to close by the third quarter of 2025. For Regeneron, the deal is a bold step toward integrating consumer genomics into its pharmaceutical innovation pipeline.
For former 23andMe customers, the acquisition offers a measure of continuity—but also raises fresh questions about how their personal genetic information will be used in the future. While Regeneron’s assurances are clear, watchdog groups and privacy advocates are likely to keep a close eye on how the transition unfolds.