Regeneron Pharmaceuticals, Inc. (NASDAQ: REGN) has emerged as the successful bidder in the bankruptcy auction for 23andMe Holding Co., securing an agreement to acquire the genetic testing company's core assets for $256 million. The transaction, announced on May 19, 2025, is subject to bankruptcy court and regulatory approvals, with an expected closing in the third quarter of 2025.
The deal encompasses 23andMe's Personal Genome Service (PGS), Total Health and Research Services business lines, along with its valuable Biobank and associated assets. Regeneron plans to operate 23andMe as a wholly owned subsidiary and maintain uninterrupted consumer genome services.
"Regeneron was one of the first biotech companies to bet its future on the power of DNA, fueling our drug discovery efforts so as to deliver some of the world's leading and most innovative medicines," said George D. Yancopoulos, M.D. Ph.D., co-Founder, Board co-Chair, President and Chief Scientific Officer of Regeneron.
Strategic Fit with Regeneron's Genetics Focus
The acquisition aligns with Regeneron's long-standing commitment to genetics-guided research and drug development. Through its Regeneron Genetics Center (RGC), established in 2013, the company has already sequenced genetic information from nearly three million people in research studies.
Aris Baras, MD, Senior Vice President and Head of the Regeneron Genetics Center, emphasized the strategic value of the acquisition: "We share 23andMe's founding vision of the power of genetics and data and the health benefits to individuals and society in understanding the human genome. We believe we are uniquely suited to be responsible and effective stewards of 23andMe's future."
The combined genetic datasets could significantly accelerate Regeneron's ability to identify new drug targets and develop treatments for serious diseases. The company's existing portfolio includes medications for eye diseases, allergic and inflammatory conditions, various cancers, and infectious diseases including Ebola and COVID-19.
Data Privacy Commitments
A key focus of the announcement was Regeneron's commitment to maintaining data privacy standards. The company has pledged to ensure compliance with 23andMe's existing consumer privacy policies and applicable laws regarding customer data.
As part of the bankruptcy process, Regeneron will work with an independent, court-appointed Customer Privacy Ombudsman to detail its intended use of customer data and demonstrate the privacy programs and security controls it has in place.
"We assure 23andMe customers that we are committed to protecting the 23andMe dataset with our high standards of data privacy, security and ethical oversight and will advance its full potential to improve human health," Baras stated.
23andMe's Path Forward
For 23andMe, which has faced financial challenges leading to its bankruptcy filing, the acquisition represents a lifeline that preserves its core mission and team. The deal does not include 23andMe's Lemonaid Health business, which provides telehealth services.
"We are pleased to reach an agreement with a science-driven partner that maintains our team and helps ensure our mission will carry forward," said Joe Selsavage, Interim Chief Executive Officer of 23andMe. "With the support of Regeneron and their deep experience in genetic sequencing, testing and discovery, we look forward to continuing to help people access and understand the human genome for the benefit of customers and patients."
Industry Impact and Future Outlook
The acquisition represents a significant consolidation in the genetic testing and research space. By combining 23andMe's consumer-focused genetic testing platform with Regeneron's pharmaceutical research capabilities, the deal creates a powerful integrated model for translating genetic insights into therapeutic advances.
Regeneron's approach to genetics has already yielded significant results in drug development. The company uses proprietary technologies such as VelociSuite to produce optimized fully human antibodies and new classes of bispecific antibodies, guided by genetic insights.
With the addition of 23andMe's assets, Regeneron strengthens its position in the competitive landscape of genetics-driven drug discovery, potentially accelerating the development timeline for new treatments across multiple disease areas.
The transaction is expected to close following bankruptcy court approval and regulatory review, with additional details about operating plans to be shared at that time.
