23andMe to be acquired by Regeneron

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23andMe to be acquired by Regeneron

DNA testing company 23andMe (MEHCQ) is being purchased out of bankruptcy by large-cap drugmaker Regeneron (REGN), for $256 million.

The deal includes “substantially all assets,” but excludes the telehealth platform, pharmacy fulfillment business, and lab and test ordering services under Lemonaid Health, according to the agreement filed in the US Bankruptcy Court in the Eastern District of Missouri. The deal is scheduled to close July 1.

The news sent 23andMe’s stock up more than 26% in pre-market trading. Regeneron’s stock was up just over 1%.

The steep discount on the once highly-valued testing firm puts to end concerns about the fate of sensitive genetic data of millions of customers. It also aligns with a strategy the 23andMe had been efforting for year.

KIEV, UKRAINE – 2019/01/02: In this photo illustration, the Regeneron Biotechnology company logo seen displayed on a smartphone. (Photo Illustration by Igor Golovniov/SOPA Images/LightRocket via Getty Images) · SOPA Images via Getty Images

“Regeneron intends to acquire 23andMe’s Personal Genome Service (PGS), Total Health and Research Services business lines, together with its Biobank and associated assets, for $256 million and for 23andMe to continue all consumer genome services uninterrupted. Subject to bankruptcy court and regulatory approvals and other customary closing conditions, the transaction is expected to close in the third quarter of 2025,” Regeneron said in a statement Monday.

23andMe, which launched in 2006, was famously

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— ex-wife of

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co-founder Sergey Brin. The company had

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pairing its DNA data bank with drug discovery — hoping to make it a more efficient process as the industry turned to more personalized and targeted treatments. But the few

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produced little.

Regeneron is already in the business of linking de-identified genetic data to drug discovery, according to co-founder and board chair George Yancopoulos.

“We have deep experience with large-scale data management, having worked with collaborators around the world to link deidentified DNA sequences from nearly three million consented participants to electronic health records, safely and securely enabling future medical advances. 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,” he said in a statement Monday.

23andMe began shutting down clinical trials in November of last year, and filed for bankruptcy in March.

Story Continues

Despite having a popular consumer test, 23andMe struggled to turn a profit since going public. It went public via a SPAC, via Richard Branson’s Virgin Group, in 2021, and raised $592 million in gross proceeds. The company was valued at $3.5 billion then.

But industry watchers believe the consumer testing model still holds value.

“Consumer-facing testing startups are

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, and young consumers

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of any generation in at-home testing across fertility, microbiome, and hormone health,” according to Rock Health, a venture funding firm, in an email to clients in March.

That has been evidenced by

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of an at-home cervical ******* screening kit.

Regeneron said in a statement Monday that it intends on ensuring the data is kept secure and individuals’ privacy is paramount. The pharma company isn’t new to genetic testing and data banks, as it has been doing so through clinical trials for years.

“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, senior vice president and head of the Regeneron Genetics Center, in a statement.

“Since 2013, the Regeneron Genetics Center has sequenced the genetic information of nearly three million people in research studies, using this deidentified data to make meaningful discoveries at speed and scale,” Baras said.

Yahoo Finance senior legal reporter

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contributed to this article.

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is the senior health reporter at Yahoo Finance, covering all things pharma, insurance, care services, digital health, PBMs, and health policy and politics. That includes GLP-1s, of course. Follow Anjalee as AnjKhem on social media platforms X, LinkedIn, and Bluesky

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