23andMe Acquired by Regeneron for $256 Million to Protect User Data

23andMe Acquired by Regeneron for $256 Million to Protect User Data

DNA testing company 23andMe has confirmed it will be acquired by Regeneron Pharmaceuticals for $256 million. This deal follows 23andMe’s bankruptcy filing in the United States just two months ago. Regeneron has committed to upholding 23andMe’s privacy standards and ensuring strong data security measures remain in place.

Last month, several U.S. state attorneys general called for tighter oversight of user data following concerns about the safety of sensitive genetic information. In response, 23andMe agreed to appoint an independent ombudsman to monitor how the company handles data security. Under the acquisition, Regeneron will take control of nearly all operational assets of 23andMe. The company’s subsidiary, Lemonaid Health, will be shut down as part of the agreement.

Despite the acquisition, 23andMe will continue to operate as a separate unit owned by Regeneron. Regeneron plans to use the genetic data collected by 23andMe to support its drug development research. According to the terms of the deal, the company’s mission to protect customer privacy and maintain consent will continue alongside its business activities.

The sale was finalized last week through an auction process overseen by the bankruptcy court. 23andMe declined to provide further comment when contacted by news organizations. Experts have noted that the acquisition represents a shift from 23andMe’s original humanitarian mission to a more commercial focus. Many users had previously believed 23andMe’s goals were primarily philanthropic, but with Regeneron’s ownership, the company’s pharmaceutical research priorities have become clearer.

Founded in 2006 by Anne Wojcicki, 23andMe quickly became popular and received endorsements from celebrities like Oprah Winfrey and Snoop Dogg. After going public in 2021, the company reached a valuation of over $6 billion. However, it never turned a profit and struggled with falling sales of its DNA test kits. Attempts to shift to a subscription model failed to attract enough customers, and its efforts to use genetic data for pharmaceutical ventures also faltered.

In 2023, 23andMe suffered a significant data breach that exposed the personal information of millions of users. Hackers exploited outdated passwords to access details like family relationships, birth years, and geographic information. Although the company said no actual DNA data was compromised, it settled a lawsuit involving nearly seven million customers over privacy violations. After the breach and settlement, 23andMe laid off 200 employees, cutting about 40% of its workforce.

When filing for bankruptcy, several state attorneys general advised customers to remove their data from 23andMe’s systems. The company stressed that any new owner must respect privacy laws and internal policies. However, its privacy policy allows the transfer or sale of personal data during mergers, acquisitions, or bankruptcy. To address concerns, 23andMe agreed to appoint a court-supervised overseer who will ensure genetic data is securely managed under Regeneron’s ownership.

Users should keep track of any changes to privacy policies and stay aware of how their genetic data is handled going forward.

Author

  • Silke Mayr

    Silke Mayr is a seasoned news reporter at New York Mirror, specializing in general news with a keen focus on international events. Her insightful reporting and commitment to accuracy keep readers informed on global affairs and breaking stories.

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