New York-based biotech company Regeneron Pharmaceuticals has agreed to purchase 23andMe for $256 million, including its Total Health and Research Services and its biobank of customer data and genetic samples. The acquisition follows 23andMe’s bankruptcy auction, with all bidders required to comply with privacy laws and company policies regarding customer data.

Figure 1. Pharmaceutical Giant Poised to Acquire 23andMe and Its Genetic Data.

23andMe states that user data is anonymized and genetic samples are deleted when accounts are closed, but the extent of retained information—and how Regeneron will use it—remains unclear. Figure 1 shows Pharmaceutical Giant Poised to Acquire 23andMe and Its Genetic Data.

The deal, pending approval from the US Bankruptcy Court, is expected to close later this year. Regeneron co-founder George D. Yancopoulos said the purchase will advance large-scale genetics research for future drug development.

Since launching its at-home DNA testing kits, 23andMe has collected genetic data from over 15 million customers. Valued briefly at $6 billion after going public in 2021, the company filed for bankruptcy in March and saw the departure of co-founder and former CEO Anne Wojcicki.

Mark Jensen, 23andMe’s chair, emphasized the deal’s focus on protecting customer privacy while enabling the company’s mission to continue. Regeneron will also offer employment to existing employees of the acquired units to maintain ongoing operations.

Pharmaceutical company Regeneron announced on Monday its plan to purchase genetic testing firm 23andMe for $256 million after a bankruptcy auction.

The acquisition includes 23andMe’s genomics service and a database containing genetic and personal information from 15 million customers. Regeneron intends to use this data to aid drug discovery while pledging to “prioritize the privacy, security, and ethical use” of customer information.

23andMe filed for bankruptcy in March following a data breach that compromised the private and genetic data of 7 million users during 2023. The company’s stock value plunged amid declining consumer interest in its DNA testing kits, and founder and CEO Anne Wojcicki resigned after the bankruptcy filing.

The bankruptcy court appointed a federal trustee to oversee the sale of 23andMe’s assets, raising concerns over the potential transfer of sensitive data to adversarial or unethical buyers.

Regeneron, as the winning bidder, emphasized its commitment to adhere to privacy laws and 23andMe’s data policies. The court will review the acquisition on June 17. Regeneron clarified that it will not acquire 23andMe’s Lemonaid Health business.

Background — What is 23andMe?

23andMe is a well-known company that offers at-home DNA testing kits, helping millions of people learn about their ancestry, traits, and health risks. Since launching, it has collected genetic samples and personal data from over 15 million customers.

Why Is 23andMe Being Sold?

After years of struggling to turn a profit, 23andMe filed for bankruptcy earlier this year. A major data breach exposed the genetic information of millions of customers, and interest in DNA testing kits declined, causing the company’s value to plummet.

Who Is Buying 23andMe?

Regeneron Pharmaceuticals, a large biotech company based in New York, won the bankruptcy auction with a $256 million bid. They will acquire 23andMe’s genomics services and its massive biobank of customer genetic data.

What Will Happen to Customer Data?

Regeneron plans to use the genetic and personal data from 23andMe customers to accelerate drug discovery and medical research. The company has promised to prioritize privacy, security, and ethical use of this sensitive information, but exact details on data handling remain uncertain.

What’s Next?

The acquisition is subject to approval by the US Bankruptcy Court, with a decision expected in June. If approved, Regeneron will continue offering DNA testing services through 23andMe, while working to maintain customer privacy and comply with all relevant laws.

1. https://www.theverge.com/news/669548/23andme-bankruptcy-auction-regeneron-purchase
2. https://techcrunch.com/2025/05/19/pharma-giant-regeneron-to-buy-23andme-and-its-customers-data-for-256m/

Cite this article:

Priyadharshini S (2025), A Pharmaceutical Giant Is Set to Acquire 23andme And Its User Data, AnaTechMaz, pp. 89