Regeneron swoops on genetic testing firm 23andMe

DNA testing company 23andMe looks destined to be taken over by a pharma company, as Regeneron agrees a $256 million deal to acquire a company that, at its height in 2021, was worth around $6 billion.

While the proposed deal has immediately raised concerns about millions of people's genetic data coming into the ownership of a pharmaceutical company, Regeneron has insisted that it will "prioritise the privacy, security and ethical use of 23andMe's customer data."

23andMe filed for bankruptcy in March, prompting the resignation of co-founder and chief executive Anne Wojcicki, who had launched a bid to take the company private with a $0.40 per share offer that was rejected by the board. At the time, Wojcicki said that stepping down would make it easier for her to pursue a deal as an independent bidder.

23andMe was founded 19 years ago to provide saliva-based genetic testing of health and ancestry to consumers, going public in 2021. It subsequently branched out into drug development, notably forging an alliance with GSK that has since come to an end.

In a statement, Regeneron said that its offer covers 23andMe's personal genome service, Total Health platform that combines sequencing with blood testing and telehealth for disease prevention, and its biobank of DNA samples and related data.

The company said it would work with the independent ombudsman charged with overseeing the bankruptcy processes in order to get through the purchase process, which it hopes to complete in the third quarter of this year.

"Regeneron was one of the first biotech companies to bet its future on the power of DNA, fueling our drug discovery efforts so as to deliver some of the world's leading and most innovative medicines," said Regeneron's chief scientific officer, 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," he added.

"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."

If the deal goes through, 23andMe will operate as a wholly owned subsidiary of Regeneron and will continue its personal genomics service activities, and all employees will be retained, according to a joint statement. The Lemonaid telehealth business – bought by 23andMe in 2021 in a $400 million deal – will be wound down.

An independent privacy ombudsman will review the deal and report to the bankruptcy court, which has the ultimate say over whether it can proceed, by 10th June.