Regeneron Pharmaceuticals, a leading U.S.-based biotechnology company, has announced it will acquire most of the assets of 23andMe, a consumer genetic testing, for $256 million. The 23andMe acquisition, which is part of 23andMe’s bankruptcy proceedings, includes the company’s Personal Genome Service®, its Total Health and Research Services business, a vast genetic “biobank,” and associated assets.
While the deal is expected to help stabilize 23andMe’s future, it has also raised questions among privacy advocates, lawmakers, and consumer watchdogs over the fate of millions of customers’ sensitive genetic data.
What the Deal Involves
The transaction is part of a court-supervised sale under Chapter 11 bankruptcy. 23andMe filed for bankruptcy in March 2025 after struggling financially for several years, ending a dramatic fall from grace for what was once a Silicon Valley success story.
According to the agreement, Regeneron will purchase substantially all of 23andMe’s core assets but will not acquire Lemonaid Health, a telehealth subsidiary, which will be shut down separately. Regeneron will continue to operate 23andMe’s consumer genetic services, ensuring uninterrupted access for users.
Importantly, Regeneron has pledged to honor 23andMe’s existing privacy policy, which restricts the sharing of genetic data without user consent or a legal mandate such as a court order or subpoena. The company has also committed to employing all staff in the acquired business units.
Ensuring Privacy and Consent
With genetic data considered among the most sensitive forms of personal information, concerns around the acquisition have centered on data privacy and user consent. Both Regeneron and 23andMe have stressed that customer information will remain protected.
“We assure 23andMe customers that we are committed to protecting the 23andMe dataset with our high standards of data privacy, security and ethical oversight,” said Dr. Aris Baras, Senior Vice President and Head of the Regeneron Genetics Center®. “With their consent, we will continue using this data to pursue discoveries that benefit science and society.”
Mark Jensen, Chair of the Special Committee of 23andMe’s Board, echoed that sentiment: “This transaction allows the mission of 23andMe to live on, while maintaining critical protections around customer privacy, choice and consent with respect to their genetic data.”
Under the terms of the agreement, Regeneron must process all customer data according to existing privacy policies, consent agreements, and security protocols. In addition, the deal will be reviewed by a court-appointed Consumer Privacy Ombudsman, who is expected to present a detailed privacy impact report to the court by June 10, 2025.
Regulatory and Legal Oversight
The transaction is still subject to regulatory and court approvals, including review under the Hart-Scott-Rodino Antitrust Improvements Act. A bankruptcy court hearing is scheduled for June 17, and the deal is expected to close in the third quarter of 2025.
As part of the bankruptcy process, 23andMe secured up to $35 million in debtor-in-possession financing from JMB Capital Partners. The completion of this acquisition allows the company to access additional funding to support ongoing operations until the deal closes.
Federal regulators, including the Federal Trade Commission (FTC), have been closely watching the situation. Earlier this year, FTC Chair Andrew Ferguson stated that any buyer of 23andMe must honor the company’s existing privacy policies and must not retroactively change them after purchase.
Public Backlash and Privacy Concerns
Despite Regeneron’s reassurances, privacy advocates remain skeptical. Suzanne Bernstein, counsel at the Electronic Privacy Information Center, said, “Without strong federal consumer data privacy protections, Regeneron’s intentions to ‘prioritize’ the privacy and security of consumer genetic data still leave consumers concerned.”
She added that many customers likely never envisioned their genetic data being part of a corporate sale, especially for purposes beyond ancestry and health insights.
This skepticism is not unfounded. After 23andMe filed for bankruptcy in March, California Attorney General Rob Bonta urged consumers to delete their genetic data from the company’s database and request the destruction of any biological samples. That warning sparked a sharp rise in deletion requests from concerned users.
Regeneron’s Broader Vision
Regeneron views the acquisition as a strategic move to further its work in genetics-based drug discovery. The company has long invested in DNA research and operates the Regeneron Genetics Center, which has already sequenced the genetic data of nearly three million individuals in global research collaborations.
“We bet our company’s future on the power of DNA,” said Dr. George Yancopoulos, Regeneron’s co-Founder and Chief Scientific Officer. “This acquisition allows us to build on 23andMe’s mission and apply our high standards of safety and integrity to their data and ongoing services.”
Dr. Yancopoulos also emphasized the company’s experience in safely managing large-scale genetic data, noting that their efforts have contributed to breakthrough treatments for conditions such as blindness, asthma, cancer, Ebola, and COVID-19.
What Happens Next for 23andMe?
Once the acquisition is finalized, 23andMe will operate as a wholly owned subsidiary of Regeneron. The company will continue to offer its Personal Genome Service to consumers, maintaining its role as a direct-to-consumer genetic testing platform.
Joe Selsavage, interim CEO of 23andMe, called the agreement “an opportunity to carry our mission forward.” He added, “With the support of Regeneron and their deep experience in genetic sequencing and discovery, we look forward to continuing to help people access and understand the human genome.”
While the transaction offers a lifeline to 23andMe and promises continuity for customers, the future will depend heavily on Regeneron’s ability to navigate the public’s trust and uphold the company’s commitment to privacy.
Regeneron Acquire 23andMe: Key Takeaways
- Purchase Price: $256 million for core 23andMe assets, excluding Lemonaid Health
- Buyer: Regeneron Pharmaceuticals, Inc.
- Subject to: Bankruptcy court and regulatory approvals
- Privacy Protections: Regeneron will uphold 23andMe’s existing privacy policies
- Data Use: Will require customer consent; reviewed by a privacy ombudsman
- Future: 23andMe to operate as Regeneron subsidiary and continue genome testing
As the deal progresses, all eyes will be on how Regeneron balances its ambitions in genetics-driven medicine with its promises to protect the deeply personal data entrusted to 23andMe for over a decade.
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