Regeneron Pharmaceuticals Acquires 23andMe: A New Chapter in Genetic Testing

Regeneron Pharmaceuticals, a prominent U.S.-based biotechnology firm, has made headlines with its announcement to acquire most of the assets of 23andMe, a consumer genetic testing company, for $256 million. This acquisition is part of 23andMe’s bankruptcy proceedings, which has raised eyebrows and sparked discussions about the implications for consumer privacy and the future of genetic data management.

What the Deal Involves

The acquisition is structured as a court-supervised sale under Chapter 11 bankruptcy. 23andMe filed for bankruptcy in March 2025, marking a significant downturn for a company that once epitomized Silicon Valley innovation. The agreement allows Regeneron to purchase nearly all of 23andMe’s core assets, including its Personal Genome Service®, Total Health and Research Services, and a vast genetic biobank. However, it does not include Lemonaid Health, a telehealth subsidiary, which will be shut down separately.

Regeneron has committed to maintaining the continuity of 23andMe’s consumer genetic services, ensuring that users will still have access to their genetic information and services without interruption.

Ensuring Privacy and Consent

One of the most pressing concerns surrounding this acquisition is the handling of sensitive genetic data. Both Regeneron and 23andMe have emphasized their commitment to data privacy. Regeneron has pledged to honor 23andMe’s existing privacy policy, which restricts the sharing of genetic data without user consent or a legal mandate.

Dr. Aris Baras, Senior Vice President and Head of the Regeneron Genetics Center®, reassured customers, stating, “We assure 23andMe customers that we are committed to protecting the 23andMe dataset with our high standards of data privacy, security, and ethical oversight.” This sentiment was echoed by Mark Jensen, Chair of the Special Committee of 23andMe’s Board, who highlighted the importance of maintaining critical protections around customer privacy and consent.

Under the terms of the agreement, Regeneron must process all customer data according to existing privacy policies and security protocols. A court-appointed Consumer Privacy Ombudsman will also review the deal and present a privacy impact report by June 10, 2025.

Regulatory and Legal Oversight

The acquisition is subject to regulatory and court approvals, including a review under the Hart-Scott-Rodino Antitrust Improvements Act. A bankruptcy court hearing is scheduled for June 17, with the deal 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, which will help support ongoing operations until the acquisition is finalized.

Federal regulators, including the Federal Trade Commission (FTC), are closely monitoring the situation. FTC Chair Andrew Ferguson has emphasized that any buyer of 23andMe must honor the company’s existing privacy policies and cannot retroactively change them post-acquisition.

Public Backlash and Privacy Concerns

Despite Regeneron’s assurances, skepticism remains among privacy advocates. Suzanne Bernstein, counsel at the Electronic Privacy Information Center, expressed concerns about the lack of strong federal consumer data privacy protections. She noted that many customers likely never anticipated their genetic data being part of a corporate sale, especially for purposes beyond ancestry and health insights.

This skepticism is not unfounded. Following 23andMe’s bankruptcy filing, 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. This warning led to a surge in deletion requests from concerned users.

Regeneron’s Broader Vision

Regeneron views this acquisition as a strategic move to enhance its work in genetics-based drug discovery. The company has a long-standing commitment to DNA research and operates the Regeneron Genetics Center, which has sequenced the genetic data of nearly three million individuals in global research collaborations.

Dr. George Yancopoulos, Regeneron’s co-Founder and Chief Scientific Officer, stated, “We bet our company’s future on the power of DNA.” He believes that this acquisition will allow Regeneron to build on 23andMe’s mission while applying high standards of safety and integrity to the data and ongoing services.

What Happens Next for 23andMe?

Once the acquisition is finalized, 23andMe will operate as a wholly owned subsidiary of Regeneron, continuing to offer its Personal Genome Service to consumers. Joe Selsavage, interim CEO of 23andMe, described the agreement as “an opportunity to carry our mission forward.” He expressed optimism about the future, stating, “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.”

As this transaction unfolds, the focus will be on how Regeneron navigates public trust while upholding its commitment to privacy and ethical data management.

Regeneron Acquires 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: Requires customer consent; reviewed by a privacy ombudsman.
• Future: 23andMe to operate as a Regeneron subsidiary and continue genome testing.

As the deal progresses, the spotlight will remain on Regeneron’s ability to balance its ambitions in genetics-driven medicine with its promises to protect the deeply personal data entrusted to 23andMe for over a decade.