23andMe To Be Acquired By Tarrytown-Based Regeneron For $256M

TARRYTOWN, NY — A beleaguered company, perhaps best known for its at-home genealogy testing, will be acquired by an iconic Hudson Valley company.

Tarrytown-based Regeneron Pharmaceuticals, Inc. announced on Monday that it has been named the successful bidder in the bankruptcy auction for substantially all of the assets of 23andMe Holding Co. The once-dominant human genetics and biotechnology company declared bankruptcy in March.

Regeneron says that it intends to acquire 23andMe's Personal Genome Service, Total Health and Research Services business lines, along with its Biobank and associated assets, for $256 million, and for 23andMe to continue all consumer genome services without interruption. Subject to bankruptcy court and regulatory approvals and other customary closing conditions, the transaction is expected to close in the third quarter of this year, according to the company.

"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, including treatments to prevent blindness, for allergic diseases from asthma to atopic dermatitis, for several forms of cancer, and even for Ebola and COVID-19," Dr. George D. Yancopoulos, President and Chief Scientific Officer of Regeneron, said. "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."

Regeneron plans to ensure compliance with 23andMe's consumer privacy policies and applicable laws regarding the treatment of customer data. As the successful bidder, Regeneron plans to detail the intended use of customer data and the privacy programs and security controls in place for review by a court-appointed, independent Customer Privacy Ombudsman and other interested parties.

"23andMe is a pioneer in consumer genetics and research, and we are excited for the opportunity to support their important mission and grow their platform and business," Dr. Aris Baras, Head of the Regeneron Genetics Center, said. "As a world leader in human genetics, Regeneron Genetics Center is committed to and has a proven track record of safeguarding the genetic data of people across the globe, and, with their consent, using this data to pursue discoveries that benefit science and society. 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. Since 2013, the Regeneron Genetics Center has sequenced the genetic information of nearly three million people in research studies, using this deidentified data to make meaningful discoveries at speed and scale. 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, and we look forward to welcoming their talented team."

23andMe will operate as a wholly owned direct or indirect subsidiary of Regeneron Pharmaceuticals, Inc. and continue operations as a personal genomics service, according to the company.

Regeneron's purchase does not include 23andMe's Lemonaid Health business.

"We are pleased to reach an agreement with a science-driven partner that maintains our team and helps ensure our mission will carry forward," Joe Selsavage, Interim Chief Executive Officer of 23andMe, said. "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."