Regeneron to Acquire 23andMe: A New Chapter in Genomics?
Regeneron Pharmaceuticals is set to acquire genetic testing firm 23andMe Holding for $256 million through a bankruptcy auction. The deal, announced Monday, aims to enhance Regeneron’s drug revelation capabilities by integrating 23andMe’s vast database of customer DNA profiles. Regeneron has pledged to prioritize the ethical use of customers’ DNA data.
Strategic Acquisition: Genomics-Driven Drug Discovery
The acquisition provides Regeneron access to over 15 million customer DNA profiles collected through 23andMe’s direct-to-consumer saliva testing kits. This trove of genetic information is expected to significantly bolster Regeneron’s research and growth efforts in genomics-driven drug discovery.
Data Privacy Concerns Resurface
The transaction brings data privacy issues back into the spotlight,especially given 23andMe’s recent challenges. The genomics company, once a leader in ancestry DNA testing, has faced declining demand for its testing kits and reputational damage from a 2023 data breach that exposed millions of customers’ genetic data. This breach and subsequent bankruptcy filing have raised concerns among lawmakers, who fear that millions of customers’ genetic data could be sold to unscrupulous buyers.
Did you know?
Direct-to-consumer genetic testing has grown rapidly in recent years, offering insights into ancestry, health risks, and more. however, it also raises complex questions about data privacy and security.
Regeneron’s Commitment to privacy
Regeneron has committed to adhering to 23andMe’s privacy policies and applicable laws regarding the use of customer data. The drugmaker also plans to work transparently with a court-appointed independent overseer, who will assess the implications of the deal for consumer privacy and deliver a report to the court by June 10. The court is scheduled to consider approval of the transaction on June 17.
Industry Outlook
Bernstein analyst William Pickering believes the investments in genomics make good strategic sense
for Regeneron,though he notes that it might take a decade or more to see a return.Pickering added,Given Regeneron’s track record,we also believe 23andMe customers are in good hands from a privacy perspective.
Deal Details
- Regeneron will acquire all units of 23andMe, except telehealth service Lemonaid Health, which the genetic testing firm plans to wind down.
- The transaction is expected to be completed in the third quarter.
- After the transaction, 23andMe will operate as a wholly-owned unit of Regeneron.
Frequently Asked Questions
Pro Tip
If you’ve used direct-to-consumer genetic testing services, review their privacy policies regularly and understand how your data is being used.
