Regeneron Acquires 23andMe for $256 Million in Bankruptcy Auction

Regeneron Pharmaceuticals has emerged as the winning bidder in the bankruptcy auction for genetic testing company 23andMe, agreeing to acquire the embattled firm for $256 million. The deal, announced on Monday, is subject to bankruptcy court approval and regulatory clearances.

Acquisition Details and Strategic Implications

Regeneron's acquisition plan encompasses 23andMe's core genetic testing services, research operations, and biobank. The pharmaceutical giant has committed to maintaining 23andMe's consumer genome services without interruption, with the company set to operate as a Regeneron subsidiary post-acquisition.

Key assets included in the deal:

• 23andMe's Total Health platform, offering comprehensive testing including exome sequencing and blood biomarker analysis
• Research operations involved in genetic studies on conditions such as bipolar disorder and dyslexia
• Antibody development programs for solid tumor indications
• Genome-wide association studies, including work on myasthenia gravis

Notably, 23andMe's telehealth platform, Lemonaid Health, is not part of the acquisition.

Regeneron's move comes at a critical time for both companies. The acquisition could bolster Regeneron's gene therapy pipeline and research capabilities, potentially offsetting recent challenges in its core business. In Q1 2025, Regeneron reported a 26% year-on-year decline in U.S. sales of its Eylea franchise, bringing in $1.04 billion.

23andMe's Financial Struggles and Bankruptcy

23andMe's path to acquisition follows a period of significant financial distress. Despite a $3.5 billion valuation at its 2021 public listing, the company reported a net loss of $312 million in fiscal year 2023. In November 2024, 23andMe was forced to reduce its workforce by approximately 40%, cutting 200 employees in an attempt to stabilize its finances.

The company filed for Chapter 11 bankruptcy in March 2025, seeking court approval to sell substantially all of its assets. Former CEO Anne Wojcicki's attempts to take the company private were rejected by a special committee of independent directors.

Data Privacy and Ethical Considerations

A key stipulation of the bankruptcy court's approval of 23andMe's sale was that potential buyers must agree to comply with the company's existing privacy policies and applicable laws. Regeneron has pledged to "prioritize the privacy, security and ethical use of 23andMe's customer data," addressing concerns about the sensitive nature of the genetic information held by 23andMe.

This commitment to data protection will be crucial as Regeneron integrates 23andMe's assets into its research and development programs, particularly in light of 23andMe's extensive biobank and ongoing genetic studies.