Regeneron Pharmaceuticals has won a $256 million bid to acquire genetic testing company 23andMe through a bankruptcy auction — a pivotal moment for the once-innovative consumer genetics firm. Announced on May 19, 2025, this deal comes two months after 23andMe sought Chapter 11 bankruptcy protection, ending its turbulent run as an independent entity.
Under the acquisition agreement, Regeneron will acquire “substantially all” of 23andMe’s assets, including its core Personal Genome Service (PGS), Total Health and Research Services divisions, and its biobank containing genetic data from about 15 million customers. The deal excludes 23andMe’s telehealth subsidiary Lemonaid Health, which was acquired for $400 million in 2021 and will be discontinued.
After the acquisition, 23andMe will operate as a wholly-owned subsidiary of Regeneron, retaining all existing employees. The transaction awaits approval from the U.S. Bankruptcy Court for the Eastern District of Missouri and other regulatory bodies, with closing expected in the third quarter of 2025.
Behind 23andMe: A $6B descent into bankruptcy
23andMe’s acquisition marks a dramatic turn for a company that once dominated consumer genetics. Founded in 2006 by Anne Wojcicki and others, 23andMe pioneered direct-to-consumer genetic testing, offering saliva-based DNA kits that revealed insights into ancestry and potential health risks.
The company’s innovative approach earned widespread acclaim, including Time magazine’s “Invention of the Year” award in 2008. A 2021 SPAC merger briefly valued 23andMe at $6 billion, making Wojcicki, who held a 49% stake, a billionaire. Yet despite early success, 23andMe struggled to maintain a viable business model. Demand for testing kits declined, profitability remained elusive, and business innovation stalled. New ventures, including a subscription service and drug development efforts, failed to gain traction.
A significant data breach in 2023 compromised millions of users’ genetic information, leading to a class-action settlement. By 2024, 23andMe’s value had plummeted to just 2% of its peak. Financial results showed declining revenue, with fiscal year 2024 generating $219.6 million, down from $299.5 million the previous year.
The company’s decline accelerated in late 2024 with a 40% workforce reduction. In September 2024, all seven independent directors resigned, protesting Wojcicki’s strategic decisions. The final blow came in March 2025, when 23andMe filed for bankruptcy and Wojcicki stepped down as CEO.
Expanding genetic research through acquisition
This acquisition presents a significant opportunity for Regeneron, a leading biotechnology firm specialising in genetics-led research and drug development, to enhance its genomics capabilities.
“Regeneron was among the first biotech companies to invest its future in the power of DNA, propelling our drug discovery initiatives to provide some of the world’s leading and most innovative medicines,” stated George D. Yancopoulos, co-founder and Chief Scientific Officer of Regeneron. “We believe we can assist 23andMe in fulfilling its mission to aid individuals interested in understanding their DNA and enhancing their health, while also advancing Regeneron’s commitment to utilising extensive genetic research to improve societal approaches to illness treatment and prevention.”
Regeneron has established itself as a genetic research pioneer through its Regeneron Genetics Centre (RGC), which has sequenced nearly three million exomes linked to electronic health records. Earlier this year, the company invested $119.5 million in Truveta to expand its genetics database, targeting an additional ten million patient volunteers.
The acquisition of 23andMe’s database of 15 million DNA profiles aligns with Regeneron’s genetics-driven approach to drug discovery. Bernstein analyst William Pickering noted that genomics investments “make good strategic sense” for Regeneron, though he cautioned returns might take a decade or longer.
Safeguarding customer genetic data
The sale has raised significant concerns among privacy advocates, lawmakers, and customers about the future of millions of people’s sensitive genetic data. Regeneron’s acquisition of 23andMe could potentially lead to changes in how this data is used and protected. After 23andMe’s March bankruptcy filing, several state attorneys general urged customers to remove their information from the company’s database.
Regeneron has committed to maintaining 23andMe’s privacy practices and following existing privacy policies and relevant data protection laws to address these worries. To ensure transparency and accountability, the company will work openly with a court-appointed independent Customer Privacy Ombudsman, who will oversee customer data handling during and after the acquisition.
“Regeneron intends to ensure compliance with 23andMe’s consumer privacy policies and applicable laws concerning the treatment of customer data,” the company stated. The ombudsman will evaluate the acquisition’s privacy implications and present findings to the court by June 10, with a review hearing set for June 17.
Mark Jensen, 23andMe’s board chairman, affirmed the deal’s data protections: “We are pleased to have reached an agreement that maximises the business’s value and allows 23andMe’s mission to continue, while ensuring essential protections for customer privacy, choice, and consent regarding their genetic information.”
Regeneron’s acquisition of 23andMe represents a lifeline for a struggling pioneer and a potential transformation in healthcare genetic data use as consumer genetics evolves. While financial benefits may take years, combining 23andMe’s vast genetic database with Regeneron’s drug development expertise could lead to significant advances in personalised medicine and disease treatment, potentially improving healthcare outcomes for many.
