Introduction
Regeneron Pharmaceuticals has strategically acquired the majority of assets from 23andMe, a genetic testing company [4], for $256 million following 23andMe’s bankruptcy [1] [6]. This acquisition aims to enhance Regeneron’s genetics-based drug discovery efforts while ensuring the privacy and security of customer data.
Description
Regeneron Pharmaceuticals has acquired most assets from genetic testing company 23andMe for $256 million following the latter’s bankruptcy proceedings in March. This acquisition encompasses 23andMe’s Personal Genome Service® [4], Total Health and Research Services [3] [4], a large genetic biobank [4], and other associated assets [4], ensuring the continuity of the company’s operations while prioritizing the privacy [5], security [1] [2] [3] [4] [6], and ethical use of customer data [1] [6]. The deal is pending approval from the bankruptcy court and relevant regulatory bodies [6], with a review scheduled for June 17, and is expected to close in the third quarter. A court-appointed Consumer Privacy Ombudsman will also oversee the transaction and present a privacy impact report by June 10, 2025 [4].
Regeneron has reiterated its commitment to upholding all relevant privacy laws and consumer protections regarding the handling of genetic data. The company plans to leverage the extensive genomic data from 23andMe’s 15 million users to enhance its genetics-based drug discovery efforts, a goal that 23andMe previously struggled to achieve [5]. Mark Jensen [2] [5], chair of 23andMe’s board [2] [5] [6], expressed satisfaction with the transaction [6], emphasizing the importance of maintaining protections around customer privacy [6], choice [2] [6], and consent [2] [4] [5] [6]. Regeneron will provide further details about its intended use of the data after finalizing the acquisition [2], and its data security practices will be subject to review by the independent Customer Privacy Ombudsman, as mandated by the bankruptcy judge.
This acquisition has garnered positive feedback from privacy regulators, including the UK Information Commissioner’s Office and the Office of the Privacy Commissioner of Canada [3]. George Yancopoulos reassured 23andMe customers that high standards for safety and integrity will be applied to their data and ongoing genetic services [2]. Regeneron will honor 23andMe’s existing privacy policies and has a strong track record of safeguarding personal genetic data, having previously analyzed genetic information from nearly 3 million consenting individuals through its Regeneron Genetics Center [2].
In light of previous concerns regarding the potential sale of customer data to unethical buyers during the bankruptcy proceedings [1], Regeneron has emphasized its dedication to protecting customer data. This commitment is particularly significant following a data breach in October 2023 that compromised the information of approximately 6.9 million customers, which led to a notable decline in 23andMe’s stock value and the resignation of founder and CEO Anne Wojcicki. Notably, Regeneron will not be acquiring 23andMe’s Lemonaid Health business as part of this transaction. Customers retain the ability to revoke or update their permissions regarding the use of their genetic information at any time, a crucial aspect of maintaining their privacy and control. Concerns regarding the safety of 23andMe’s data have been raised by consumers and regulators [5], with California Attorney General Rob Bonta advising residents to delete their genetic data during 23andMe’s financial troubles [5]. Federal Trade Commission Chairman Andrew Ferguson highlighted the necessity for any buyer to adhere to 23andMe’s privacy policies [5]. The interim CEO of 23andMe views the agreement as an opportunity to advance the company’s mission with Regeneron’s support in genetic sequencing and discovery [4], while the success of this transition will depend on Regeneron maintaining public trust and privacy commitments [4].
Conclusion
The acquisition of 23andMe’s assets by Regeneron Pharmaceuticals represents a significant step in advancing genetics-based drug discovery. By prioritizing data privacy and security, Regeneron aims to mitigate concerns and build trust among consumers and regulators. The successful integration of 23andMe’s assets will depend on Regeneron’s ability to uphold privacy commitments and leverage the acquired data responsibly, potentially setting a precedent for future transactions in the genetic testing industry.
References
[1] https://techcrunch.com/2025/05/19/pharma-giant-regeneron-to-buy-23andme-and-its-customers-data-for-256m/
[2] https://observer.com/2025/05/regeneron-acquires-23andme/
[3] https://www.infosecurity-magazine.com/news/23andme-buyer-regeneron-prioritize/
[4] https://thecyberexpress.com/regeneron-acquire-23andme/
[5] https://arstechnica.com/science/2025/05/biotech-company-regeneron-to-buy-bankrupt-23andme-for-256m/
[6] https://www.usatoday.com/story/money/2025/05/19/23andme-bankruptcy-regeneron-pharmaceuticals-256-million/83726595007/
