Former 23andMe CEO Anne Wojcicki Wins Bid to Acquire Company for $305 Million

In a significant turn of events for the genetic testing industry, Anne Wojcicki, co-founder and former CEO of 23andMe, has successfully bid to acquire the company through her nonprofit organization, TTAM Research Institute. The $305 million offer outbid competitors, including biotechnology firm Regeneron, for nearly all of 23andMe's assets.

Acquisition Details and Privacy Concerns

The bankruptcy court is set to approve the sale on June 17, following 23andMe's Chapter 11 filing in March. The deal includes the company's genetic testing business, research services, and the Lemonaid Health telehealth business. This development comes after Wojcicki's previous attempts to take the company private were rejected by the board.

The acquisition has raised concerns about the fate of consumers' genetic data. To address these issues, TTAM has committed to complying with 23andMe's existing privacy policies and has included a term sheet of voluntary privacy safeguards in the purchase agreement. These measures include:

• Compliance with all applicable state privacy laws as if TTAM were a for-profit entity
• Establishment of a consumer privacy advocacy board within 90 days
• Restrictions on selling or transferring customers' genetic data in case of future mergers, acquisitions, or bankruptcies

Despite these assurances, California Attorney General Rob Bonta and a coalition of 28 states have filed objections to the sale, citing concerns about consumer consent and data protection.

Industry Implications and Future Outlook

The acquisition marks a significant shift in the genetic testing landscape, with 23andMe transitioning from a public company to a nonprofit organization. Mark Jensen, 23andMe's board chair, stated that the competitive bidding process has resulted in "significantly more value to our stakeholders while enhancing critical protections around customer privacy, choice and consent."

Wojcicki expressed her commitment to continuing 23andMe's mission, emphasizing the importance of empowering individuals with choice and transparency regarding their genetic data. The deal also includes provisions for ongoing scientific and biomedical studies using de-identified data, maintaining the company's research capabilities.

As the genetic testing industry continues to evolve, this acquisition raises important questions about data ownership, privacy, and the role of nonprofit organizations in managing sensitive personal information. The outcome of this transition will likely have far-reaching implications for both consumers and the broader pharmaceutical and biotechnology sectors.