DNA testing company 23andMe (MEHCQ) is being purchased out of bankruptcy by large-cap drugmaker Regeneron (REGN), for $256 million.
The deal includes “substantially all assets,” but excludes the telehealth platform, pharmacy fulfillment business, and lab and test ordering services under Lemonaid Health, according to the agreement filed in the US Bankruptcy Court in the Eastern District of Missouri. The deal is scheduled to close July 1.
The news sent 23andMe’s stock up more than 26% in pre-market trading. Regeneron’s stock was up just over 1%.
The steep discount on the once highly-valued testing firm puts to end concerns about the fate of sensitive genetic data of millions of customers. It also aligns with a strategy the 23andMe had been efforting for year.
“Regeneron intends to acquire 23andMe’s Personal Genome Service (PGS), Total Health and Research Services business lines, together with its Biobank and associated assets, for $256 million and for 23andMe to continue all consumer genome services uninterrupted. Subject to bankruptcy court and regulatory approvals and other customary closing conditions, the transaction is expected to close in the third quarter of 2025,” Regeneron said in a statement Monday.
23andMe, which launched in 2006, was famously lead and co-founded by Anne Wojcicki — ex-wife of Google co-founder Sergey Brin. The company had tried for 10 years to create a robust business segment pairing its DNA data bank with drug discovery — hoping to make it a more efficient process as the industry turned to more personalized and targeted treatments. But the few partnerships it succeeded in securing over the years produced little.
Regeneron is already in the business of linking de-identified genetic data to drug discovery, according to co-founder and board chair George Yancopoulos.
“We have deep experience with large-scale data management, having worked with collaborators around the world to link deidentified DNA sequences from nearly three million consented participants to electronic health records, safely and securely enabling future medical advances. We believe we can help 23andMe deliver and build upon its mission to help those interested in learning about their own DNA and how to improve their personal health, while furthering Regeneron’s efforts to use large-scale genetics research to improve the way society treats and prevents illness overall,” he said in a statement Monday.
23andMe began shutting down clinical trials in November of last year, and filed for bankruptcy in March.
