
23andMe's $256 Million Rescue: A New Chapter Begins with Regeneron
2025-05-19
Author: Ting
A Billion-Dollar Deal for a Troubled Pioneer
In a dramatic turn of events, DNA testing giant 23andMe has agreed to be acquired by Regeneron Pharmaceuticals for a staggering $256 million, shortly after filing for bankruptcy protection in the U.S. just two months ago.
Regeneron's Commitment to Privacy
As part of this acquisition, Regeneron has pledged to uphold 23andMe's privacy policies, ensuring that user data remains secure. This commitment comes on the heels of heightened scrutiny from state attorneys general concerned about the potential misuse of sensitive genetic data.
What the Acquisition Means for 23andMe
Almost all of 23andMe's assets will change hands, while the company's subsidiary, Lemonaid Health, will be phased out. Despite the takeover, 23andMe will operate as a wholly-owned division of Regeneron, which intends to leverage its genetic database for drug development.
Navigating a Turbulent Path
Co-founded in 2006 by Anne Wojcicki, the company once boasted a valuation exceeding $6 billion after going public in 2021, but has struggled to find its footing. Celebrity endorsements from the likes of Oprah and Snoop Dogg fueled initial excitement, but demand for its testing kits waned, and attempts at monetizing its data through a subscription service flopped.
Data Breach and Financial Fallout
The year 2023 hit the company hard with a data breach exposing millions of users' information. Despite assurances that sensitive DNA records were not compromised, the fallout led to a lawsuit settlement due to inadequate data protection, resulting in layoffs that saw 40% of its workforce let go.
Customers Urged to Protect Their Data
As 23andMe grappled with bankruptcy, state attorneys general advised customers to delete their information from the platform. The company reassured users it would protect their data, but caveats in its privacy policy raised alarms over potential data transfers during acquisitions.
Looking Ahead
With the Regeneron acquisition, there's hope that 23andMe can reclaim its mission, bolstered by new resources and a focus on ethical data practices. Only time will tell if this merger can revitalize a once-celebrated firm as it navigates the challenging landscape of genetic testing.