23andMe sells data bank to biotech Regeneron for US$256m
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The news: Genetic-testing company 23andMe will sell its data bank to drugmaker Regeneron for USD256 million ($397.5 million), after filing for bankruptcy earlier this year.
The numbers: The USD50 million ($79.4 million) company cut around 40% of its workforce (around 200 employees) as part of a restructuring in 2024. Despite briefly reaching a valuation of USD6 billion after its listing in 2021, the company has never turned a profit.
The firm’s data bank once contained DNA samples from around 15 million people
The context: The sale follows widespread calls from government officials and customers that 23andMe protect the genetic data that it had collected via saliva samples from customers.
Before the company declared bankruptcy, the California Attorney General Rob Bonta issued an urgent consumer alert for customers of 23andMe to delete their genetic data from the company’s databases over uncertainty as to where it could end up should a bankruptcy occur.
As part of the Chapter 11 process, a judge appointed a privacy ombudsman to ensure compliance with privacy policies related to customers' genetic materials. The genetic data generated by the firm is considered the company's most valuable asset.
The agreement with Regeneron includes a pledge that it will comply with 23andMe’s privacy and consent policies currently in place to protect customers’ data.
Regeneron said: “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 sources: 23andMe press release, Capital Brief, Bloomberg
