Regeneron buys 23andMe out of bankruptcy, sparking genetic data privacy concerns

Regeneron acquires 23andMe for $256 million, raising privacy concerns over genetic data use amid promises of continued consumer services and protection. Images (c) ConsumerAffairs

The biotech giant pledged that it will safeguard consumer data, cites its extensive experience

● Drugmaker acquires DNA testing firm and gains access to massive genetic database

● Consumer genome services to continue; Regeneron pledges privacy compliance
● California AG previously urged deletion of personal data amid sale fears


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In a deal raising significant privacy concerns, biotechnology giant Regeneron Pharmaceuticals announced Monday it is acquiring embattled consumer genetics company 23andMe out of bankruptcy for $256 million.

The transaction, expected to close in the third quarter of 2025, includes 23andMe’s core Personal Genome Service, Total Health and Research Services, and a vast biobank of customer genetic data and samples—one of the most extensive collections of human genetic material held by a private 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,” said George D. Yancopoulos , M.D. Ph.D., co-Founder, Board co-Chair, President and Chief Scientific Officer of  Regeneron. “

Once valued at over $6 billion, 23andMe filed for Chapter 11 bankruptcy earlier this year following years of financial instability. With this acquisition, Regeneron secures a strategic asset with enormous potential for drug development, but also one that has ignited controversy over consumer privacy and the ethics of corporate ownership of sensitive genetic data.

Regeneron moves to reassure customers

Regeneron said all 23andMe consumer genome services will continue without disruption and emphasized that it will uphold the privacy protections already in place. Aris Baras, a senior vice president at Regeneron, pledged the company would maintain “high standards of data privacy, security, and ethical oversight.”

Regeneron also stated it would provide a court-appointed ombudsman with a full accounting of how it plans to use the data and what protections would be maintained. The company committed to honoring 23andMe’s customer privacy policy, which prohibits sharing data with employers, insurers, law enforcement, or public databases without explicit consent.

State officials, customers express worry

Despite those assurances, the deal has sparked renewed anxiety over what happens when deeply personal health information changes hands. California Attorney General Rob Bonta previously issued a public advisory urging 23andMe users to delete their data and request the destruction of stored genetic samples.

Many users rushed to do so, but some have reported that they continue to receive email from 23andme, like this one sent to a ConsumerAffairs reporter on May 17. 

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When the email recipient tried to log in a few days later, his account could not be reached, leaving it unclear whether his data had actually been deleted.  

These concerns emerged after it became clear that a sale of the company could result in the transfer of user data to a third party, raising the specter of misuse or breaches.

A shift in the DNA economy

Founded by Anne Wojcicki in 2006, 23andMe sought to revolutionize personal health with direct-to-consumer DNA testing. But despite early popularity and a high-profile public listing in 2021, the company struggled to turn a profit and was ultimately driven to bankruptcy by declining consumer interest and mounting regulatory scrutiny.

Regeneron's acquisition signals a shift in how genetic data may be leveraged—less as a consumer service and more as a cornerstone of pharmaceutical research and development. While Regeneron has a strong record in genomics-based drug discovery, critics say that using consumer data in this context—especially without clearer public oversight—sets a dangerous precedent.


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