Regeneron Pharmaceuticals has clinched a deal to buy the assets of 23andMe for $256 million, stepping in as the successful bidder in the bankruptcy auction for the personal genomics company. This purchase includes the personal genome service, biobank, and research services of the Silicon Valley entity but does not encompass 23andMe's Lemonaid Health business. George D. Yancopoulos of Regeneron emphasized their DNA expertise, stating, as per Regeneron's newsroom, "We believe we can help 23andMe deliver and build upon its mission to help those interested in learning about their own DNA and how to improve their personal health, while furthering Regeneron's efforts to use large-scale genetics research to improve the way society treats and prevents illness overall."
In the wake of these developments, 23andMe, which had been contending with bankruptcy issues, warned their approximately 250 employees of potential layoffs as their San Francisco office at 870 Market Street prepares to shut down highlighting the company's financial troubles which were exacerbated by a previous cyberattack that compromised millions of users' data, according to a Hoodline report. Last year’s cyberattack and plunging company value, once estimated at a robust $6 billion, served as a stark reminder of the vulnerability in the tech-driven genetics market; However, the acquisition by Regeneron offers a ray of hope for the continuation of the company’s services.
The acquisition arrangement comes with Regeneron's reassurance that it will stay true to 23andMe's consumer privacy policies. Aris Baras of Regeneron shared their commitment to data privacy, stating, per Regeneron, "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." In a statement obtained by Hoodline, 23andMe expressed its intent to ensure that any potential buyer would adhere to the company's stringent privacy policies, which were a key concern among its user base following the cybersecurity breach.
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