Genetic testing company 23andMe, facing bankruptcy, has been acquired by American biotechnology company Regeneron Pharmaceuticals for $256 million. This acquisition, the highest bid in the bankruptcy auction, includes 23andMe’s brand, Personal Genome Service (PGS), Total Health, Research Services, and importantly, its biobank of customer genetic samples.
This acquisition, announced on Monday, ensures the continuation of 23andMe’s consumer-facing genome services. Customers can still purchase DNA testing kits to explore their family history and health insights. Of the potential buyers for 23andMe, and its vast database of over 15 million genetic samples, Regeneron appears to be a relatively reassuring choice. Concerns about the biobank falling into the wrong hands were significant, prompting California’s Attorney General to urge citizens to request data deletion and leading to a legislative probe into 23andMe’s data handling practices.
While trust in Regeneron, a company known for using exome sequencing to identify drug targets, is still a matter of individual perspective, the acquisition is arguably preferable to 23andMe landing with private equity firms. Regeneron gained public recognition for its experimental antibody cocktail used to treat covid-19, notably administered to Donald Trump in October 2020.
23andMe has faced considerable challenges, suggesting the new ownership might offer stability. After going public in 2021 with a $6 billion valuation, a string of setbacks, including failed drug development efforts and a poorly performing subscription service, brought its value down significantly. A 2023 data breach, initially reported to affect 14,000 people but later revealed to impact nearly 6.9 million, further damaged the company’s reputation. This breach exposed names, birth years, relationship labels, family names, locations, and, for users of the DNA Relatives feature, Family Tree profiles.
In conclusion, Regeneron’s acquisition of 23andMe marks a significant turning point for the genetic testing company. While questions surrounding data privacy and the future use of the biobank remain, the acquisition offers a degree of stability and potentially a new direction for 23andMe. This deal highlights the ongoing evolution and complexities of the biotech industry, especially regarding the handling of sensitive genetic information.
