Bankrupt 23andMe to Be Acquired by Regeneron for $256 Million.
Genetic testing company 23andMe has announced it will be acquired by Regeneron Pharmaceuticals for $256 million (£192 million), marking a major turning point in the once-celebrated firm’s turbulent journey.
The agreement follows the company’s Chapter 11 bankruptcy filing in the U.S. just two months ago, capping off a series of financial, operational, and reputational setbacks that have plagued the firm in recent years.
Under the deal, Regeneron will acquire nearly all of 23andMe’s assets. The firm will continue to operate as a wholly owned subsidiary of Regeneron, which plans to use 23andMe’s vast genetic database to support its drug development efforts.
"We are pleased to have reached a transaction that maximizes the value of the business and enables the mission of 23andMe to live on, while maintaining critical protections around customer privacy, choice and consent with respect to their genetic data," said 23andMe board chairman Mark Jensen.
As part of the agreement, Regeneron has committed to upholding 23andMe’s privacy policies and maintaining robust security controls to protect user data—an issue that has drawn scrutiny since a significant data breach in 2023. The breach, which affected nearly 7 million customers, exposed personal information such as family trees, birth years, and geographic locations. The company maintained that DNA records were not included in the stolen data.
In response to concerns from U.S. state attorneys general, 23andMe agreed last month to the appointment of an independent ombudsman to oversee data protection practices. The deal with Regeneron includes continued adherence to these oversight measures.
RELATED: 23andMe Files for Bankruptcy Protection as CEO Resigns.
Despite the privacy assurances, some experts have expressed concern over the shift in control. Dr. Jennifer King, a privacy and data policy fellow at Stanford’s Institute for Human-Centered Artificial Intelligence, noted that 23andMe’s original messaging often leaned on altruism to gain user trust.
"The company always led with the non-profit 'we're helping humanity' side which helped obscure its for-profit mission," said Dr. King, who has interviewed many 23andMe users.
“Now that it is in the sole control of a company that is doing genetic research for pharmaceutical development,” she added, “a profit-driven mission is likely to be clearer to customers.”
A Company in Decline
Founded in 2006 by Anne Wojcicki, 23andMe enjoyed early success, helped by endorsements from celebrities such as Oprah Winfrey, Eva Longoria, and Snoop Dogg. It went public in 2021 with a valuation exceeding $6 billion.
However, despite its popularity, the company never turned a profit. Demand for its home DNA testing kits declined, and efforts to pivot—through subscription services and drug research—failed to gain traction.
In addition to financial struggles, the company faced reputational damage from the 2023 data breach. The fallout led to a lawsuit and a settlement for failing to safeguard customer privacy, followed by a round of layoffs affecting 200 employees—roughly 40% of its workforce.
Wojcicki stepped down as CEO in March 2025 after a failed attempt to take the company private, reportedly resisting outside acquisition bids until the bankruptcy court process began.
Data Legacy and Consumer Trust
When 23andMe filed for bankruptcy, attorneys general across several U.S. states urged users to consider deleting their data from the platform. Though the company reiterated that its privacy policies remained in effect, those policies did include provisions that allowed user data to be transferred in the event of a sale or bankruptcy.
This added fuel to growing public concern about how personal genetic data might be used—or misused—under new ownership.
Still, the agreement with Regeneron requires compliance with data privacy laws and includes external oversight measures to reassure both regulators and consumers.
A New Chapter for 23andMe
While 23andMe’s story has been marked by unmet expectations and controversy, the acquisition by Regeneron offers the chance for a reset. With substantial resources and a focused strategy on pharmaceutical research, Regeneron could unlock the full potential of 23andMe’s vast genetic database in a way that aligns business success with scientific advancement.
Most importantly, consumer privacy safeguards remain in place, and the company’s original mission—to help individuals understand their DNA—will continue under new stewardship.
If handled with transparency and care, this new chapter may not only restore trust in 23andMe but also lead to real breakthroughs in personalized medicine.
