Regeneron Acquires 23andMe for $256 Million Following Bankruptcy

Earlier this month, Regeneron Pharmaceuticals made headlines when it acquired consumer genetic testing company 23andMe for $256 million. This acquisition comes as a shift for the beleaguered company, as 23andMe filed for bankruptcy protection just this past March.

The announcement was made on a Monday and was accompanied by an extensive quarterly announcement by Regeneron aimed at investors. 23andMe makes the agreement official amidst a year of ups and downs. That year, the fledgling company faced steep challenges, including a massive data breach that exposed the private and genetic information of nearly 7 million customers. In early 2023, hackers hacked the system and made off with genetic ancestry information from almost 6.9 million customers. This incident caused widespread alarm to UK users’ privacy and hence lack of trust.

With consumer interest in DNA testing kits running dry, 23andMe’s stock price dropped to below-zero. The resignation of the company’s founder and chief executive, Anne Wojcicki, after its collapse, underscored the upheaval roiling the company. Once a prominent name in the genetic testing market, 23andMe’s decline has been marked by its inability to maintain consumer engagement and trust.

At the time, Regeneron, which is famed for its pharmaceutical innovation, promised to treat 23andMe’s customer data with extreme care. The company stated that it will “prioritize the privacy, security, and ethical use of 23andMe’s customer data” as it moves forward with the acquisition.

Prior to its financial struggles, 23andMe had made appearances at major events, including being present at the gift lounge during the 19th annual Latin GRAMMY Awards held at MGM Grand Garden Arena in Las Vegas in November 2018. Those past awards haven’t been enough to carry the company over recent challenges.

With the acquisition, a new chapter starts for both businesses. For Regeneron, it is a chance to double down on its genetic insights while diversifying its product lineup. 23andMe certainly must be hoping it can turn around its fortunes and win back customers’ confidence. They expect this new partnership with the new management will help them get there.