Regeneron Pharmaceuticals has announced the purchase of 23andMe Holding, which specializes in genetic testing, for $256 million during an auction within the framework of bankruptcy proceedings, Reuters reports.
Regeneron has assured that it will comply with 23andMe's privacy policy and the law regarding the use of customer personal data. The company is also prepared to report to the judicial supervisor about the planned use of this data.
The bankruptcy process, which started in March, has raised concerns among American politicians, who fear that the genetic information of millions of users could fall into the wrong hands.
In April, 23andMe agreed to be supervised by a court-appointed supervisor who will monitor the protection and processing of users' confidential data.
The company has received data from more than 15 million people who used its online service and sent in saliva samples for DNA analysis. Among the reasons for the financial problems are a decline in demand for tests and a major data leak in 2023.
Under the deal, Regeneron will acquire all of the company's divisions, except for the telemedicine platform Lemonaid Health, which is planned to be closed.
Upon completion of the transaction, 23andMe will operate as a subsidiary of Regeneron. The transaction is scheduled to close in the third quarter of 2025.