Genetic Lifeline: Regeneron Rescues Troubled 23andMe in High-Stakes Bankruptcy Deal
- In a dramatic turn, biotech giant Regeneron is set to acquire embattled 23andMe for $256 million, pulling the genetics company from the depths of a court-supervised bankruptcy.
- The acquisition follows a tumultuous period for 23andMe, marked by a 2023 data breach compromising 7 million users and the subsequent departure of its founder CEO1.
- Central to the deal is the fate of 15 million customer genetic profiles, with Regeneron vowing robust privacy protections under the watchful eye of a court-appointed ombudsman2, 4.
SAN FRANCISCO – May 19, 2025 – Once a trailblazer in consumer genetics, 23andMe Holding Co. (OTC: MEHCQ) is poised for a new chapter. Reeling from financial distress and the fallout of a significant data breach, the company has entered a definitive agreement to be acquired by Regeneron Pharmaceuticals, Inc. (NASDAQ: REGN), a titan in life-transforming medicines. The $256 million deal, hammered out in a bankruptcy auction, signals a potential revival for 23andMe's mission, albeit under new stewardship1, 2.
The path to this acquisition was fraught with challenges. 23andMe, which once promised to unlock the secrets of personal DNA for millions, saw its fortunes plummet, leading to Chapter 11 proceedings and a desperate search for a lifeline1. Regeneron's winning bid not only secures 23andMe's core assets—including its Personal Genome Service and vast research database—but also comes with a crucial commitment: the sanctity of customer data.
Regeneron has pledged to uphold 23andMe’s existing privacy policies and consents. "We assure 23andMe customers that we will apply our high standards for safety and integrity to their data," stated George D. Yancopoulos, M.D. Ph.D., of Regeneron, highlighting their own Regeneron Genetics Center's track record. To bolster these assurances, a Court-appointed Consumer Privacy Ombudsman will scrutinize the transaction's impact on consumer privacy, presenting a report by June 10, 20252.
Crucially, Regeneron has offered employment to all staff in the acquired units, ensuring continuity for the mission of empowering individuals through genetic understanding4. "We are pleased to have reached a transaction that maximizes the value of the business and enables the mission of 23andMe to live on," commented Mark Jensen, Chair of 23andMe's Special Committee.
The Lemonaid Health subsidiary is not part of the deal and will be wound down. The transaction awaits final approval from the U.S. Bankruptcy Court, with a hearing scheduled for June 17, 2025, and is expected to close in Q3 2025.
For information on 23andMe’s Chapter 11 proceedings, concerned parties can contact the Company’s claims agent, Kroll, at (888) 367-7556.
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