(NewsNation) — DNA testing company 23andMe — and its customers’ data — will soon belong to Regeneron Pharmaceuticals.
Regeneron, a biotechnology company, announced Monday that it will “acquire substantially all of the assets” of 23andMe through a $256 million deal.
Will 23andMe sale affect customer data privacy?
Regarding 23andMe’s massive DNA database, Regeneron said it plans to process the data “in accordance with the consents, privacy policies and statements, terms of service, and notices currently in effect.”
“Through our Regeneron Genetics Center, we have a proven track record of safeguarding personal genetic data, and we assure 23andMe customers that we will apply our high standards for safety and integrity to their data and ongoing consumer genetic services,” the company said in a statement.
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An independent, court-appointed ombudsman will examine the transition and its impacts on customer privacy. That official will present a report to the U.S. Bankruptcy Court for the Eastern District of Missouri by June 10.
The purchase came two months after 23andMe filed for Chapter 11 bankruptcy and announced it was open for sale through a court-approved reorganization plan.
“We believe we can help 23andMe deliver and build upon its mission to help people learn about their own DNA and how to improve their personal health, while furthering Regeneron’s efforts to improve the health and wellness of many,” said George D. Yancopoulos, Regeneron’s president, in the statement.
Pending approval from the court, the sale could be finalized later this year.
Why did 23andMe file for bankruptcy?
23andMe’s path to Chapter 11 bankruptcy — and the exit of CEO Anne Wojcicki after failed takeover bids — began after a data breach in 2023, during which hackers accessed data from nearly 7 million customer profiles.
The incident led to tumbling stocks, a decreased interest in the company’s DNA testing kits and a $30 million class-action lawsuit settlement.
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In September, the entire independent board of directors resigned. A month later, 23andMe announced mass end-of-year layoffs. Around 40% of the company’s workforce, or 200 people, were cut.
Was 23andMe customer data at risk?
The company had the genetic data of more than 15 million customers at the time of its bankruptcy filing.
While health care information is typically safeguarded under privacy laws, information acquired by direct-to-consumer companies isn’t guaranteed the same protection.
California Attorney General Rob Bonta warned users in March to purge their data sooner rather than later, calling the sensitive DNA data a “trove” of sensitive information.
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Adrianus Warmenhoven, a cybersecurity expert at NordVPN, told the Associated Press that 23andMe’s data breach and subsequent bankruptcy are a “wake-up call for data privacy.”
“Genetic data isn’t just a bit of personal information — it is a blueprint of your entire biological profile. When a company goes under, this personal data is an asset to be sold with potentially far-reaching consequences,” Warmehoven said.
About 80% of 23andMe’s customers agree to have their genetic data analyzed for medical research upon signing up for the service, NPR reported last year.
