The $256M 23andMe Acquisition: Bankruptcy, Restructuring and Regeneron’s Genomics Play

Regeneron has agreed to acquire most of 23andMe’s assets for $256 million in a court-supervised sale, marking a significant step into consumer genetics.

23andMe, which for years led the consumer genomics market with its DNA testing services, will now support Regeneron’s broader effort to apply genetic insights into both individual and population-level health strategies.

The deal includes 23andMe’s Personal Genome Service, Total Health platform and Research Services business lines, but excludes the Lemonaid Health telemedicine subsidiary, which will be wound down. Regeneron will retain all employees from the acquired units and, under the agreement, comply with 23andMe’s existing privacy policies and applicable laws governing customer genetic data.

Through its services, 23andMe collects and analyzes genetic data from millions of customers, offering insights into ancestry, health risks, carrier status and traits, along with research participation and ongoing health reports. The company’s story archives share customer accounts noting how they came to benefit from early insights — such as one individual who learned she carried the APOE e4 variant linked to late-onset Alzheimer’s, prompting early medical follow-up, confirmatory testing and enrollment in a clinical trial for an FDA-approved therapy.

The acquisition follows 23andMe’s March 2025 Chapter 11 filing in the US Bankruptcy Court for the Eastern District of Missouri, where the company sought to preserve operations while pursuing a value-maximizing asset sale. The filing included motions to cut costs by rejecting leases and contracts, and to access up to $35 million in debtor-in-possession financing from JMB Capital Partners.

At the time of the filing, Anne Wojcicki stepped down as CEO by mutual agreement with the board and was succeeded on an interim basis by CFO Joe Selsavage.

Subsequently, with the growing concern over the management of sensitive genetic information, California Attorney General Rob Bonta issued a consumer alert reminding 23andMe users of their rights under the Genetic Information Privacy Act and California Consumer Privacy Act, including the ability to delete their genetic data and biological samples.

In its Q3 fiscal 2025 report, 23andMe had signaled mounting financial distress. The company reported a drop in cash reserves from $216.5 million in March 2024 to $79.4 million by December and disclosed substantial doubt about its ability to continue, citing the need for additional capital or strategic alternatives to continue operations.

To cut costs, 23andMe shut down its Therapeutics division in November 2024 and carried out a 40% workforce reduction, aiming for over $35 million in annualized savings. At the same time, the company was still navigating the aftermath of a 2023 cybersecurity breach. A proposed $30 million class action settlement had received only conditional court approval, with arbitration claimants excluded and no final resolution in place.

For Regeneron, the acquisition focuses less on direct-to-consumer services and more on expanding its data-driven approach to drug discovery. Through its Regeneron Genetics Center, the company already applies large-scale genomic data to identify promising therapeutic targets. By integrating 23andMe’s assets, Regeneron gains access to one of the most extensive consumer genetics datasets available, enhancing its R&D capabilities.

George Yancopoulos, Regeneron’s president and chief scientific officer, stated that Regeneron will apply the same standards to safeguarding 23andMe’s consumer data as it does within its own research center.

A court-appointed Consumer Privacy Ombudsman will assess potential impacts on consumer data as part of the transaction review. Final approval is expected by June 2025, with the deal anticipated to close in the third quarter.

A few days before the 23andMe acquisition news, Regeneron was awarded over $400 million in damages after a jury found Amgen had violated antitrust laws by using bundling practices that limited market access for Praluent (alirocumab). The case involved anti-competitive bundling practices in the PCSK9 inhibitor market and concluded with findings under both federal and state law.

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