Regeneron Pharmaceuticals has announced a plan to acquire the bankrupt genetic testing company 23andMe for $256 million, raising privacy concerns as the pharmaceutical giant will gain access to the genetic data of over 15 million customers.
The New York Post reports that Regeneron Pharmaceuticals has seized the opportunity to acquire the once-thriving genetic testing company 23andMe, which recently filed for bankruptcy. The $256 million deal will grant Regeneron access to 23andMe’s extensive collection of genetic samples and data, encompassing the personal information of more than 15 million customers. This acquisition has raised significant concerns among privacy advocates and customers who had willingly provided their genetic information to 23andMe under different ownership and circumstances.
According to the announcement made by Regeneron, the acquisition will include 23andMe’s Personal Genome Service, Total Health and Research Services, and its substantial biobank. The pharmaceutical company has assured that all of 23andMe’s genetic testing services will continue without interruption, and the deal is expected to be finalized in the third quarter of 2025, pending necessary approvals from the bankruptcy court and regulatory authorities.
To address the privacy concerns surrounding the acquisition, Regeneron has pledged to adhere to 23andMe’s existing consumer-privacy rules. The company has also committed to working with a court-appointed ombudsman who will investigate the matter to ensure the protection of customer data. Aris Baras, head of Regeneron’s genetics center, stated, “We assure 23andMe customers that we are committed to protecting the 23andMe dataset with our high standards of data privacy, security and ethical oversight and will advance its full potential to improve human health.”
However, the acquisition grants Regeneron access to an unprecedented collection of genetic data that has been accumulating since 23andMe introduced its groundbreaking direct-to-consumer testing in 2007. The company, once a Silicon Valley darling, saw its valuation soar past $6 billion following its public debut in 2021. However, its value has since plummeted to a mere $50 million, largely due to a massive $30 million settlement linked to a data breach that compromised the personal information of nearly 7 million users.
In light of the bankruptcy filing and impending acquisition, California Attorney General Rob Bonta urged 23andMe customers to take proactive measures to protect their privacy. He advised customers to delete their data from 23andMe’s database and demand the destruction of any stored saliva samples before the company’s assets were acquired by another entity. Customers can access their 23andMe accounts to view and delete their data, as well as withdraw their consent for research and request the destruction of any stored samples.
The acquisition announcement coincides with the departure of Anne Wojcicki, the co-founder and chief executive of 23andMe. Wojcicki, a Yale-trained biologist, stepped down from her position on the day of the bankruptcy filing following a long internal dispute with the board over her proposal to take the company private. In a striking rebuke to Wojcicki’s leadership, all seven of 23andMe’s independent board members resigned in September.
Read more at the New York Post here.
Lucas Nolan is a reporter for Breitbart News covering issues of free speech and online censorship.
