Bankrupt genetics company 23andMe wants to reopen bidding on its assets after former Chief Executive Anne Wojcicki put together a $305 million offer, topping Regeneron Pharmaceuticals.
Regeneron was previously the top bidder at a bankruptcy auction, offering to pay $256 million to buy substantially all of the DNA-testing company's assets. Now, through a nonprofit called TTAM Research Institute, Wojcicki says she can outdo Regeneron.
Regeneron is open to making a new bid for 23andMe, but wants a $10 million breakup fee if 23andMe ultimately accepts Wojcicki's offer, according to Reuters. The companies are hashing through the details in court.
Regeneron stock dipped 0.4% to close at 483.07, while shares of 23andMe's holding company rose 27.3%, closing at 4.90.
23andMe's Splashy Launch And Burnout
Regeneron planned to acquire 23andMe's Personal Genome Service, Total Health and Research Services and its biobank of genetic samples and data. The biotech giant planned to continue all of 23andMe's consumer genome services uninterrupted.
The deal was originally planned to close in the third quarter.
23andMe's bankruptcy followed a splashy launch. But the company never turned a profit, burned through its cash and suffered a high-profile hack in 2023. Bad actors gained access to genetic information for roughly 7 million people, leading to a $30 million class action lawsuit.
The genetic-testing firm notes any buyer "must follow the law when it comes to your data."
In March, 23andMe filed for bankruptcy and Wojcicki stepped down from her role as CEO. Since then, Wojcicki founded TTAM. TTAM was listed as a backup bidder in the earlier auction with its offer valued at $146 million.
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