After successfully bidding in a bankruptcy auction, Regeneron Pharmaceuticals is hoping to proceed with a $256 million deal to buy 23andMe, a direct-to-consumer DNA testing company. Of course, this move is pending acceptance from government regulators and the bankruptcy court.
23andMe became public in 2021, however, the company continues to struggle in making the business financially rewarding. In April 2024, CEO and co-founder Anne Wojcicki wanted a buyout, however, the board rejected the proposal. She’s not CEO of 23andMe now, but she is still part of the board. 23andMe filed for Chapter 11 bankruptcy protection in March 2025 and expressed the plan to sell almost all of its assets. The bankruptcy filing showed that 23andMe’s assets are worth $277.42 million, with $214.7 million in debts.
The deal offered by Regeneron consists of the 23andMe Personal Genome Service and Total Health and Research Services, excluding the telehealth division, Lemonaid Health, which was about to close down. Regeneron is hoping to keep all existing 23andMe workers and will manage 23andMe as a wholly-owned company, and the consumer genome services of 23andMe will continue without interruption.
Regeneron’s Chief Scientific Officer, George Yancopoulos, believes the company can make 23andMe deliver and continue its vision to help people understand their DNA and improve their wellness, while boosting Regeneron’s initiatives to enhance the health and wellness of many individuals.
A part of the deal is the ownership of 23andMe Biobank and the genetic information of 23andMe’s clients. 23andMe has approximately 15 million clients, but with the pending sale and the likely privacy risks from a new company having clients’ genetic information, state attorneys general advised clients to ask for the destruction of their biological samples and the deletion of their genetic information. It is not yet determined how many clients have asked for the destruction of their sample and deletion of their data.
Regeneron’s senior VP, Aris Baras, assures 23andMe clients that the company will protect the 23andMe dataset using high standards of data privacy protection and will help improve human health to its full potential. Regeneron expects to adhere to 23andMe’s current privacy policies and handle customer data following 23andMe’s terms of service and the permission given by its clients.
Interim CEO of 23andMe Joe Selsavage expressed his appreciation that Regeneron will keep the current team and carry on the mission. Thanks to Regeneron’s expertise in genetic sequencing, testing, and research, it is hoped that people can continue to get access to and understanding of the human genome, benefiting customers and patients.
Before the multi-million dollar deal can proceed, a court-appointed privacy ombudsman needs to evaluate the deal to see how the purchase could impact the privacy of 23andMe consumers since Regeneron is not a HIPAA-covered entity. The ombudsman’s report will be forwarded to the bankruptcy court on or before June 10. The scheduled hearing on June 17 will see whether the sale can move forward. When the deal goes forward, it is expected to be completed in the 3rd quarter of 2025.
