23andMe headquarters.” width=”970″ height=”647″ data-caption=’23andMe has been sold for less than 95 percent of what it was worth at its peak. <span class=”media-credit”>Justin Sullivan/Getty Images</span>’>
It’s been a turbulent stretch for 23andMe, the consumer DNA testing company once famous for its saliva-based ancestry kits. After grappling with financial losses, data breaches, lawsuits and a Chapter 11 bankruptcy filing, the company—and its vast genetic database of roughly 15 million users—is now being acquired by Regeneron Pharmaceuticals, a Tarrytown, N.Y.-based biotech firm known for developing treatments for a wide range of diseases, both companies announced yesterday (May 19). The deal is expected to close in the third quarter of 2025. Regeneron emphasized that it will uphold all relevant privacy laws and consumer protections regarding the handling of genetic data.
“We are pleased to have reached a transaction that maximizes the value of the business and enables the mission of 23andMe to live on, while maintaining critical protections around customer privacy, choice and consent with respect to their genetic data,” said Mark Jensen, chair of the special committee of 23andMe’s board of directors, in a statement.
The acquisition marks the end of a volatile chapter for 23andMe, which was co-founded in 2006 by Anne Wojcicki and quickly gained traction with its consumer-focused genetic health and ancestry tests. After going public in 2021, the company hit a peak valuation of $6 billion.
But the business model proved fragile. Most customers only needed to purchase a single test, limiting opportunities for recurring revenue. The situation worsened after a 2023 data breach compromised information from about 7 million users, triggering a class action lawsuit and further eroding trust.
Tensions escalated in September 2024 when 23andMe’s independent board members resigned, citing conflicts with Wojcicki. By March, the company filed for bankruptcy protection, and Wojcicki stepped down as CEO while signaling her intention to buy the business at auction. Her bid was ultimately topped by Regeneron.
Regeneron has developed and commercialized treatments for conditions including cancer, asthma, blindness, Ebola and Covid-19. “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,” said George Yancopoulos, the company’s president and chief scientific officer.
What will happen your genetic data?
As part of the acquisition, Regeneron will not only obtain 23andMe’s genetic database but also assume control of its health and business service divisions, offering continued employment to staff within those units. One exception is Lemonaid Health, 23andMe’s telehealth subsidiary, which will not be included in the deal and is set to be wound down.
Regeneron plans to share more details about its use of customer data once the acquisition is finalized. The company has already analyzed the genetic information of nearly 3 million consenting individuals through its Regeneron Genetics Center, an initiative to accelerate medical research. “The subsidiary has a proven track record of safeguarding personal genetic data, and we assure 23andMe customers that we will apply our high standards for safety and integrity to their data and ongoing consumer genetic services,” said George Yancopoulos.
Regeneron has stated that it will honor 23andMe’s existing privacy policies. In addition, its data security and privacy practices will undergo review by a court-appointed ombudsman and other stakeholders, with findings to be presented to the bankruptcy court in June.
Of the roughly 15 million people who submitted genetic data to 23andMe, approximately 84 percent consented to having their information used for research, according to the company. However, those permissions can be revoked or updated at any time by customers. Following public warnings from the attorneys general of California and New York encouraging users to delete their data, some have likely already taken steps to erase their genetic information from the platform.
“We share 23andMe’s founding vision of the power of genetics and data and the health benefits to individuals and society in understanding the human genome,” said Aris Baras, head of the Regeneron Genetics Center, in a statement. “We believe we are uniquely suited to be responsible and effective stewards of 23andMe’s future.”
