Pharmaceutical Maker Regeneron announced Monday that it will purchase genetic testing company 23andMe for $256 million following its bankruptcy auction.
Regeneron said it will retrieve personal and genetic data from 23andMe’s Genomics Service and 15 million customers as part of the transaction. Pharma Giant plans to use 23andMe customer data to help with drug discovery, saying it will “prioritize privacy, security and ethical use of 23andme customer data.”
23AndMe filed for bankruptcy protection in March after data breaching private and genetic data of seven million customers throughout 2023. The company’s stock price plunged near zero as consumer interest in the company’s DNA test kit waned. 23Andme founder and chief executive Anne Wojcicki resigned following the collapse of the company.
After the filing, the federal bankruptcy court was appointed to oversee the sale of 23andMe assets, raising concerns that the store of customer data could be sold to hostile or unethical buyers.
In a statement, Regeneron said that as a nominated buyer for bankruptcy auctions, it intends to “ensure compliance” with 23AndMe privacy policy and laws on customer data.
The Bankruptcy Court is scheduled to consider acquiring Regeneron on June 17th. Regeneron said it would not acquire 23andMe’s Lemonaid Health Business.