Regeneron Pharmaceuticals Inc (NASDAQ:REGN) has agreed to buy genetic testing company 23andMe for $256 million, two months after the biotech firm filed for Chapter 11 bankruptcy.
The deal includes 23andMe’s consumer DNA testing and health research services, but excludes its telehealth arm, Lemonaid Health, which is being shut down.
Once valued as a pioneer in consumer genomics, 23andMe struggled after going public in 2021, facing mounting losses and privacy concerns following a 2023 data breach.
In March, the company announced plans to sell nearly all assets through a court-supervised restructuring. CEO and co-founder Anne Wojcicki stepped down but remains on the board.
Regeneron said it would retain all employees and adhere to existing privacy policies.
An independent privacy ombudsman will review the deal and report to the court by June 10. The transaction, which still requires court approval, is expected to close in the third quarter following a June 17 hearing.