Regeneron’s acquisition of 23andMe for $256 million hands over genetic data from millions of Americans to a pharmaceutical giant, raising alarms about privacy rights just months after a damaging data breach compromised customer information.
Key Takeaways
- Regeneron Pharmaceuticals has won a bankruptcy auction to acquire 23andMe for $256 million, gaining access to genetic data from millions of consumers
- The transaction includes 23andMe’s Personal Genome Service, biobank, and research services but excludes its Lemonaid Health business
- 23andMe’s valuation collapsed from over $6 billion to just $50 million following a major data breach and subsequent $30 million settlement
- California Attorney General Rob Bonta has advised customers to delete their data from 23andMe’s database, while Regeneron pledges to maintain privacy standards
- The acquisition is subject to bankruptcy court approval on June 17, with an independent overseer report on consumer privacy implications due by June 10
From $6 Billion to Bankruptcy: 23andMe’s Dramatic Fall
The once-thriving genetic testing company 23andMe has experienced a spectacular fall from grace, plummeting from a peak valuation exceeding $6 billion to being acquired in bankruptcy proceedings for a mere $256 million. Regeneron Pharmaceuticals emerged as the successful bidder in a bankruptcy auction, announcing plans to acquire substantially all assets of 23andMe. The acquisition includes the company’s Personal Genome Service, Total Health and Research Services, biobank, and associated assets—essentially everything except its Lemonaid Health business.
This dramatic devaluation followed a catastrophic 2023 data breach that compromised customer information and led to a $30 million settlement. The incident severely damaged consumer trust and accelerated the company’s financial troubles. Following the bankruptcy filing, even California Attorney General Rob Bonta took the extraordinary step of publicly advising customers to delete their genetic data from 23andMe’s database, highlighting the serious privacy concerns surrounding the company’s vast collection of sensitive personal information.
Privacy Concerns Mount As Pharmaceutical Giant Takes Control
The acquisition places millions of Americans’ sensitive genetic information directly under the control of a pharmaceutical corporation, raising significant questions about future use of this data. While Regeneron has pledged to maintain 23andMe’s existing privacy policies, skepticism remains high given the company’s history of data protection failures. An independent Customer Privacy Ombudsman has been appointed to assess the transaction’s implications for consumer privacy, with a report due by June 10 before the court considers approval on June 17.
“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,” said Aris Baras, Regeneron executive.
Experts note the current federal regulatory framework offers limited protection for genetic data privacy rights in corporate transactions. This transition of control comes at a particularly sensitive time, as 23andMe is still recovering from leadership turmoil following the departure of co-founder Anne Wojcicki amid internal conflicts and board resignations. Wojcicki, who helped establish the company in 2006 and is notably the ex-wife of Google co-founder Sergey Brin, stepped away as the company spiraled into financial distress.
Strategic Value Versus Consumer Rights
From Regeneron’s perspective, the acquisition represents a strategic opportunity to enhance their genetics-guided research and drug development capabilities. The pharmaceutical company gains access to one of the world’s largest consumer genetic databases, containing detailed genetic information from millions of Americans who submitted DNA samples for ancestry and health testing. Industry analysts suggest this treasure trove of genetic data could prove invaluable for drug discovery and development, though financial returns may take years to materialize.
“Given Regeneron’s track record, we also believe 23andMe customers are in good hands from a privacy perspective,” stated William Pickering, though he cautioned that the investment “may take a decade to yield returns.”
For consumers who previously submitted their DNA to 23andMe, the situation underscores the permanent nature of genetic data sharing in the digital age. While customers can technically delete their data and withdraw consent for research through their account settings, the practical reality is that once genetic information enters corporate databases, consumers have limited control over its ultimate disposition—especially during bankruptcy proceedings and corporate acquisitions that transfer ownership of these vast data repositories.
The Future of Consumer Genetic Testing
The transaction, expected to close in the third quarter of 2025 pending regulatory approval, will see 23andMe continue as a wholly owned subsidiary of Regeneron. The pharmaceutical giant has indicated plans to maintain the personal genomics services while leveraging the genetic database for its research initiatives. This represents a significant shift in the consumer genetic testing landscape, potentially signaling a move toward greater pharmaceutical industry integration and raising questions about whether consumer genetic testing services will increasingly serve as data collection mechanisms for drug development.
“Joe Selsavage, Interim Chief Executive Officer of 23andMe, expressed satisfaction in reaching an agreement with a science-driven partner that will help ensure the continuation of their mission,” according to the acquisition announcement, reflecting the company’s attempt to frame the transaction positively despite the circumstances leading to the sale.
For American consumers, particularly those concerned about genetic privacy and data sovereignty, this acquisition serves as a sobering reminder of how quickly companies holding sensitive personal information can change hands. While President Trump’s administration has emphasized American data sovereignty in other contexts, this transaction highlights the ongoing vulnerability of some of our most personal information—our genetic code—to corporate transactions and the urgent need for stronger protections of Americans’ genetic privacy rights.
