Regeneron acquires 23andMe for $256 million following the latter’s bankruptcy filing. This acquisition, announced in May 2025, includes access to 23andMe’s extensive genetic data, raising significant privacy and ethical concerns. The deal marks a pivotal moment for both companies. For Regeneron, it’s an opportunity to enhance its drug discovery capabilities using genetic data. For 23andMe, it represents a new chapter after financial struggles and a major data breach.
23andMe’s Financial Struggles and Bankruptcy
Founded in 2006, 23andMe gained popularity for its at-home DNA testing kits. However, the company faced challenges in monetizing its services beyond initial testing. Attempts to expand into biotechnology and telehealth were unsuccessful, leading to financial losses.
In March 2025, 23andMe filed for Chapter 11 bankruptcy protection, citing declining demand for its products and a significant data breach in 2023 that compromised millions of customers’ genetic information. The company secured approximately $35 million in debtor-in-possession financing to support ongoing operations during the bankruptcy proceedings.
Regeneron’s Acquisition of 23andMe
Regeneron Pharmaceuticals, a New York-based biotech firm, won the bid to acquire 23andMe’s assets in a court-supervised auction. The acquisition includes 23andMe’s DNA testing business and customer data but excludes its telehealth unit, Lemonaid Health, which will be discontinued.
The deal is expected to close in the third quarter of 2025, pending regulatory approvals. Regeneron has committed to upholding 23andMe’s privacy standards and complying with applicable laws concerning customer genetic data. A court-appointed official will oversee data handling and security to ensure transparency and protect user privacy.
Implications for Genetic Data Privacy
The acquisition raises important questions about the privacy and security of personal genetic information. With over 15 million customers’ DNA data now under Regeneron’s control, concerns have been raised about how this sensitive information will be used and protected.
Regeneron has pledged to honor existing privacy agreements and comply with legal safeguards concerning customer data. The company cited its experience managing anonymized genetic information from nearly three million participants to support its credibility.
However, privacy advocates have expressed concerns about the potential for misuse of genetic data and the need for stringent oversight to protect individuals’ rights. Regulators and lawmakers are closely monitoring the situation to ensure that appropriate safeguards are in place.
Future Outlook of the Acquisition
The acquisition of 23andMe by Regeneron could have significant implications for the future of personalized medicine and genetic research. By integrating 23andMe’s genetic data with its research capabilities, Regeneron aims to accelerate drug discovery and development.
However, the success of this integration will depend on how well Regeneron manages the ethical and privacy challenges associated with handling large-scale genetic data. The company will need to navigate regulatory requirements and public concerns to build trust and ensure the responsible use of genetic information.
