- DNA data saved: 23andMe co-founder Anne Wojcicki has bid $305 million through a nonprofit to acquire her bankrupt company, potentially keeping millions of customers' genetic data out of pharmaceutical hands
- Legal battle resolved: The bid comes after 27 states sued to prevent the sale of personal genetic information to biotech firm Regeneron Pharmaceuticals without customer consent
- Challenges remain: Despite the rescue bid, 23andMe has lost 2 million customers and still faces the fundamental problem that made it unprofitable—customers don't need repeat genetic testing
In a dramatic last-minute rescue, 23andMe co-founder Anne Wojcicki has outbid a pharmaceutical company to save her genetic testing startup from bankruptcy, potentially protecting the DNA data of millions of customers who feared their personal information would be sold to the highest bidder.
Wojcicki announced Friday that her newly formed nonprofit, TTAM Research Institute, had placed a $305 million bid for the company—significantly higher than Regeneron Pharmaceuticals' $256 million offer that had sparked privacy concerns nationwide.
The biotech firm's initial bid had triggered a legal firestorm, with 27 U.S. states and the District of Columbia filing a lawsuit in bankruptcy court to prevent the sale of 23andMe's personal genetic data without explicit customer consent.
"This isn't just data – it's your DNA. It's personal, permanent, and deeply private," Oregon Attorney General Dan Rayfield said when the suit was filed. "People did not submit their personal data to 23andMe, thinking their genetic blueprint would later be sold off to the highest bidder."
A founder's determination
Wojcicki's rescue bid represents a remarkable turnaround after facing repeated rejections from her own company's leadership. The entrepreneur, who launched 23andMe in 2006 with a vision of democratizing genetic research, had made two previous attempts to take the company private, only to be rebuffed by different boards of directors.
Her final pre-bankruptcy offer in March was just $40 million, making the current $305 million bid—raised over the past few months—a stunning escalation that caused Regeneron to withdraw from the bidding.
"I am thrilled that TTAM Research Institute will be able to continue the mission of 23andMe to help people access, understand and benefit from the human genome," Wojcicki said in a statement.
Rocky road ahead
While the bid may save customer data from pharmaceutical hands, significant challenges remain for the genetic testing company. 23andMe has lost approximately 2 million customers—about 15% of its customer base—following the bankruptcy filing, and the company has never achieved profitability.
The fundamental business problem persists: unlike other consumer services, genetic makeup doesn't change, leaving customers with little reason to return after receiving their initial results. Despite attempts to expand through family deals and gift promotions, analysts believe 23andMe may have largely saturated its market.
Legal hurdles also loom, including questions about whether the company's privacy policy covers transferring data to TTAM or whether customers will need to authorize the action separately.
The deal still requires court approval.