Regeneron, A Leading U.S. Biotechnology Company, to Acquire 23andMe for $256 Million
Published: May 19, 2025 | Updated: 16 Minutes Ago
Regeneron Pharmaceuticals is acquiring most of 23andMe’s assets, including its Personal Genome Service and research divisions, for $256 million after a bankruptcy auction. Learn what this means for genetic data privacy and the biotech industry.
Regeneron Buys 23andMe’s Core Business Units Amid Bankruptcy for $256 Million
SUNNYVALE, CA — In a major move set to reshape the landscape of genetic testing and biotechnology, Regeneron Pharmaceuticals has announced its acquisition of nearly all assets of 23andMe, the once-prominent consumer genetics company, for $256 million. The transaction follows 23andMe’s Chapter 11 bankruptcy filing in March 2025 and was finalized through a competitive bankruptcy auction.
What Regeneron Is Acquiring
As part of the acquisition, Regeneron (NASDAQ: REGN) will take ownership of 23andMe’s:
Personal Genome Service
Total Health Division
Research Services Unit
Notably excluded from the deal is Lemonaid Health, 23andMe’s telehealth subsidiary, which was purchased for approximately $400 million in 2021. Lemonaid Health will be shuttered, but Regeneron has offered positions to employees from the acquired divisions.
“We believe we can help 23andMe continue its mission of empowering individuals through genetic insights while advancing Regeneron’s mission to improve public health,” said Dr. George Yancopoulos, Regeneron President and Chief Scientific Officer.
Approval Pending: What Happens Next?
The acquisition is still subject to approval by the U.S. Bankruptcy Court for the Eastern District of Missouri, with a closing date anticipated in Q3 of 2025. A Consumer Privacy Ombudsman, appointed by the court, will assess the deal’s implications on genetic data privacy, with findings expected by June 10.
The Rise and Fall of 23andMe
Founded in 2006, 23andMe became a household name with its at-home DNA testing kits, offering insights into ancestry, genetic traits, and potential health risks. The company went public in 2021 through a SPAC (special purpose acquisition company) merger and reached a peak valuation of $6 billion.
However, the company struggled post-IPO, failing to establish sustainable revenue streams through its research and therapeutics arms. A major blow came in 2023, when a data breach exposed sensitive genetic data of nearly 7 million users, prompting widespread scrutiny and a loss of consumer trust.
What This Means for Genetic Data Privacy
Privacy concerns have taken center stage in the 23andMe sale process. Regulators, including the Federal Trade Commission (FTC) and multiple lawmakers, voiced concerns over the transfer of sensitive genetic information. As part of the bankruptcy process, Regeneron and other bidders were required to adhere strictly to 23andMe’s customer privacy policies.
“This transaction preserves the core mission of 23andMe while upholding essential protections around consumer privacy, choice, and consent,” said Mark Jensen, Chair of the 23andMe Board of Directors.
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Conclusion: A Turning Point for Biotech and Consumer Health
The acquisition of 23andMe’s core business by Regeneron represents a pivotal moment for the biotech industry. With genetic data becoming increasingly central to personalized medicine, this deal could redefine how consumer DNA insights contribute to therapeutic development and public health initiatives—if privacy concerns can be adequately addressed.
As this high-profile acquisition moves toward completion, all eyes will be on the court’s decision and the future integration of 23andMe’s vast genetic database into Regeneron’s cutting-edge research efforts.