Regeneron Secures Purchase of Bankrupt 23andMe in Auction
In a significant turn of events, Regeneron Pharmaceuticals has agreed to purchase DNA testing firm 23andMe out of bankruptcy. The deal, which is subject to court and regulatory approvals, is expected to close in the third quarter.
The acquisition is a strategic move by Regeneron, aiming to leverage 23andMe's vast genetics data to discover new drug targets. Notably, the Regeneron Genetics Center, launched by Regeneron in 2013, has already discovered over two dozen novel drug targets through genome sequencing.
23andMe, founded in 2006 by Linda Avey, Paul Cusenza, and Anne Wojcicki, initially gained prominence for its direct-to-consumer genetic testing and interpretation services. The company attracted significant investment, including $3.9 million from Google in 2007, and expanded into drug development ambitions, most notably through a partnership with GlaxoSmithKline (GSK) announced in 2018.
However, the company faced financial difficulties in the early 2020s, culminating in a Chapter 11 bankruptcy filing in March 2025. The bankruptcy sale involves Regeneron paying $256 million to acquire "substantially all" of 23andMe's assets, including its personal genome service, health and research service, and biobank.
Regeneron plans to continue 23andMe's consumer genome services without interruption. However, the telehealth business Lemonaid Health will not be included in the purchase and will be wound down by 23andMe.
An ombudsman appointed by the bankruptcy court will review the transaction to assess how it might affect the privacy of individuals who previously used 23andMe to sequence their genome. A report from that review is due to the court by June 10, and a hearing is set for June 17.
This sale marks a quiet end for 23andMe, which was once worth some $6 billion. The deal comes after Anne Wojcicki, the co-founder, attempted to take the company private but was unsuccessful. Members of the board later resigned to avoid a "protracted and distracting difference of view" with Wojcicki.
Some of the discovered drug targets are associated with lower risks of obesity and liver disease. A specific variant in the BRCA gene linked to breast and ovarian cancers was also discovered.
Regeneron will offer jobs to all employees at those business units, providing a lifeline for the 23andMe team. The acquisition is a testament to the potential value of genetics data in drug discovery, despite the challenges faced by 23andMe in monetizing this data and navigating privacy concerns.
- The acquisition of 23andMe by Regeneron Pharmaceuticals is a strategic move to leverage 23andMe's vast genetics data for discovering new drug targets.
- Regeneron's Regeneron Genetics Center, launched in 2013, has already discovered over two dozen novel drug targets through genome sequencing.
- The deal is expected to close in Regeneron's third quarter, subject to court and regulatory approvals, and will involve Regeneron paying $256 million to acquire "substantially all" of 23andMe's assets.
- After the bankruptcy sale, Regeneron plans to continue 23andMe's consumer genome services without interruption, while the telehealth business Lemonaid Health will be wound down by 23andMe.
