Mon May 19 17:23:36 UTC 2025: **News Article:**
**Regeneron Acquires 23andMe in Bankruptcy Auction, Sparking Data Privacy Concerns**
**NEW YORK** – Regeneron Pharmaceuticals has acquired genetic testing company 23andMe for $256 million in a bankruptcy auction, raising concerns about the privacy of the company’s 15 million customers. The deal, announced Monday, aims to bolster Regeneron’s genomics-driven drug discovery efforts by leveraging 23andMe’s extensive database of customer DNA profiles.
23andMe, once valued at $6 billion, has faced challenges in recent years, including declining demand and a significant data breach in 2023 that exposed sensitive information of millions of users. The company’s bankruptcy filing in March triggered scrutiny from lawmakers and federal agencies, including the Senate HELP Committee and the FTC, who expressed concerns about the potential misuse of customer data.
In response to the concerns, Regeneron has pledged to uphold 23andMe’s existing privacy policies and comply with all applicable data protection laws. The company has also committed to transparency with a court-appointed independent overseer who will assess the implications of the deal for consumer privacy and deliver a report by June 10. Court approval for the transaction is scheduled for June 17.
Bernstein analyst William Pickering believes the acquisition “make[s] good strategic sense” for Regeneron, noting the company’s strong track record on privacy. 23andMe will operate as a wholly owned unit of Regeneron, excluding its telehealth service Lemonaid Health, which will be shuttered. The deal is expected to close in the third quarter.
Despite the news, Regeneron’s stock dipped slightly on Monday.
First Piper 