Regeneron Loses Bid for 23andMe to Former CEO's Nonprofit

In a surprising turn of events, Regeneron Pharmaceuticals has lost its bid to acquire the genetic testing company 23andMe to a nonprofit organization led by the company's former CEO, Anne Wojcicki. This development marks a significant shift in the ongoing saga of 23andMe's financial struggles and raises important questions about the future of genetic data privacy.

Bidding War Ends with Unexpected Victor

Regeneron Pharmaceuticals, which had initially pledged $256 million to acquire 23andMe in a bankruptcy auction, declined to outbid the $305 million offer made by Wojcicki's nonprofit, the TTAM Research Institute. According to a Regeneron spokesperson, the decision not to increase their bid was based on "its assessment of 23andMe's remaining value."

The final bid from TTAM Research Institute now awaits court approval, with 23andMe describing it as "the most value-maximizing transaction for the Company's stakeholders." This outcome relegates Regeneron to the position of backup bidder, effectively nullifying their previous offer once the court approves TTAM's acquisition.

Privacy Concerns and User Data Protection

Throughout 23andMe's financial difficulties and the subsequent bidding process, user privacy has remained a paramount concern. Approximately 15% of users have requested the deletion of their genetic data since the company filed for bankruptcy, as revealed by interim CEO Joe Selsavage at a recent Senate Oversight Committee hearing.

In response to these concerns, TTAM has committed to complying with 23andMe's existing privacy policies and has agreed to additional safeguards. These include:

• Establishing a privacy advisory board
• Offering customers two years of free identity theft monitoring
• Implementing measures to prevent data breaches
• Pledging not to sell or transfer genetic data in connection with future bankruptcy or change of control, except under specific circumstances

23andMe's Financial Journey

The current situation caps off a challenging period for 23andMe. After going public in 2021 with a valuation of $3.5 billion, the company found itself operating at a $312 million loss by the end of its fiscal year 2023. This financial downturn led to the company filing for Chapter 11 bankruptcy in March, which was subsequently approved.

The acquisition by TTAM Research Institute, if approved by the court, will mark a new chapter for 23andMe, potentially stabilizing its financial situation while addressing the critical issue of genetic data privacy that has become increasingly important to its user base.