Regeneron Pharmaceuticals was the top bidder at a bankruptcy auction and said Monday it will acquire substantially all of DNA-testing outfit 23andMe for $256 million.
The biotech behemoth plans to acquire 23andMe's Personal Genome Service, Total Health and Research Services and its biobank of genetic samples and data. Regeneron says it will continue all of 23andMe's consumer genome services uninterrupted.
The deal is expected to close in the third quarter.
Chief Scientific Officer George Yancopoulos says Regeneron was one of the first biotech companies "to bet its future on the power of DNA."
"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," he said in a statement.
Regeneron stock rose a fraction, closing at 596.54. Shares of 23andMe's holding company surged 200% to 2.70.
23andMe: Spitting Into Test Tubes
23andMe made a splash when it was founded in 2006 just three years after the first human genome was sequenced. The company convinced more than 15 million people to spit into test tubes to determine their genetic ancestry. But the company never turned a profit and burned through its cash.
The company later struggled after a 2023 hacking attack in which bad actors gained access to genetic information from close to 7 million people, according to the New York Times.
Even as a $30 million class action lawsuit wound its way through the court, numerous articles suggested 23andMe users should delete their data ahead of a potential sale. The DNA-testing company noted in a fact sheet on its website that any buyer "must follow the law when it comes to your data."
23andMe filed for bankruptcy in March as its former chief executive stepped down.
Regeneron says it intends to comply with 23andMe's consumer privacy policies and applicable laws.
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