Big Pharma giant Regeneron Pharmaceuticals has won a bankruptcy auction to acquire 23andMe’s genetic database of millions of Americans for $256 million, raising serious concerns about what will happen to this treasure trove of private DNA information.
Key Takeaways
- Regeneron Pharmaceuticals is acquiring 23andMe for $256 million in a bankruptcy auction, gaining access to the genetic data of millions of Americans.
- The deal includes 23andMe’s Personal Genome Service, Total Health and Research Services, and Biobank, but excludes its Lemonaid Health business.
- Following a major data breach and $30 million settlement, 23andMe’s valuation collapsed from over $6 billion to just $50 million before the sale.
- While Regeneron promises to maintain privacy standards, a Customer Privacy Ombudsman has been appointed to review implications for consumer data rights.
- Customers concerned about their genetic privacy should know they can still delete their data from 23andMe’s database through account settings.
The Fall of a Genetic Testing Giant
The acquisition of 23andMe marks a stunning fall from grace for a company once valued at over $6 billion. Founded in 2006 by Anne Wojcicki, the ex-wife of Google co-founder Sergey Brin, 23andMe pioneered direct-to-consumer genetic testing services that allowed people to discover their ancestry and genetic health predispositions by simply mailing in a saliva sample. The company went public in 2021 but quickly encountered serious financial difficulties and privacy concerns that would ultimately lead to bankruptcy.
The collapse accelerated after a devastating data breach in 2023 that exposed sensitive customer information and resulted in a $30 million settlement. By the time the company filed for bankruptcy protection, its market valuation had plummeted to a mere $50 million – less than 1% of its peak value. This catastrophic decline highlights the perilous nature of businesses built around collecting and monetizing consumer genetic data without robust security measures.
What Happens to Your DNA Data Now?
For the millions of Americans who submitted their DNA to 23andMe, the bankruptcy auction raises alarm bells about what will happen to their most intimate biological information. Regeneron, a biotechnology company focused on developing medications for serious diseases, claims it will maintain strict privacy standards. However, the fact remains that genetic data from unsuspecting consumers who simply wanted to learn about their heritage will now be controlled by a pharmaceutical giant.
“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.
The sale is subject to both bankruptcy court approval and regulatory reviews, with a final decision expected by June 17. As part of the process, an independent Customer Privacy Ombudsman has been appointed to assess the implications of the transaction for consumer privacy rights, with a report due by June 10. California Attorney General Rob Bonta has advised concerned customers to protect themselves by deleting their data from 23andMe’s database before the transfer of ownership is completed.
The Real Value of the Deal
While the $256 million price tag might seem modest compared to 23andMe’s former valuation, industry analysts recognize the tremendous potential value of the genetic database Regeneron is acquiring. The company plans to use this information to enhance its drug development capabilities, potentially accelerating the creation of new medications. This represents a significant strategic move that leverages the voluntarily provided genetic information of millions of Americans for pharmaceutical research.
“Given Regeneron’s track record, we also believe 23andMe customers are in good hands from a privacy perspective,” said William Pickering, Bernstein analyst.
The transaction includes maintaining 23andMe as a wholly owned subsidiary, allowing the personal genomics services to continue operating. This arrangement gives Regeneron both the benefits of accessing the valuable genetic database for research purposes while potentially continuing to collect new genetic information from consumers. Though the company pledges to respect existing privacy policies, the long-term implications for genetic data privacy under this new ownership structure remain concerning.
Protecting Your Genetic Privacy
For Americans concerned about their genetic information being transferred to Regeneron, there are limited options available. Customers can still access their 23andMe accounts to delete their data and withdraw consent for research purposes. However, this process must be completed before the acquisition closes in the third quarter of 2025. The situation serves as a stark reminder that when consumers provide their genetic information to private companies, they ultimately have little control over what happens to that data if the company changes hands.
This acquisition represents a troubling example of how the private genetic information of American citizens can be bought and sold in corporate transactions with minimal oversight. While bankruptcy courts will review the deal, the fundamental question remains: should our most personal biological data be treated as a corporate asset to be transferred to the highest bidder? President Trump’s administration should carefully scrutinize this transaction to ensure proper protections for American citizens’ genetic privacy rights.
