Regeneron to Acquire 23andMe for $256 Million
Regeneron Pharmaceuticals, a U.S. biotechnology firm, has announced its acquisition of genetic testing company 23andMe following a winning bid of $256 million during a bankruptcy auction. This move comes as part of a broader strategy to enhance access to genetic data.
The acquisition allows Regeneron to obtain a significant resource: 23andMe’s Biobank, which is recognized as the largest collection of human genomic data worldwide. The Biobank contains genetic information from more than 15 million individuals, and interestingly, over 80% of them have consented to use their data for research purposes.
“The phenotypic and genetic data available from 23andMe surpasses any other cohort in life sciences,” the company claimed in its statement.
The surge in interest can likely be traced back to 23andMe’s Chapter 11 bankruptcy filing in March. On the day the announcement was made, traffic to the site spiked more than 500%, as many users rushed to delete their personal information. However, reports indicate that users faced challenges in navigating the deletion process, despite guidance provided by California Attorney General Rob Bonta.
Furthermore, 23andMe assured users that any potential buyers would be required to adhere to the same privacy policies currently in place. “Our consumer privacy policy remains intact, and there will be no changes in how we manage or protect our customer data amid these developments,” the company stated in March.
This ongoing situation follows past security breaches where data from millions of Jewish and Chinese users was compromised, as claimed in a class action lawsuit against the company.
The merger signals a significant shift in the landscape of biometric data, with a growing focus on public health implications. Robert F. Kennedy Jr., the Director of Health and Human Services, indicated that biometric information could play a role in addressing rising autism rates across the country, hinting at a meeting in Washington, D.C., with leaders in health tech.
Regeneron aims to finalize the acquisition of 23andMe by September, paving the way for new opportunities in genetic research and personalized medicine.
