Regeneron Pharmaceuticals to buy 23andMe for over $250 million

The big pharma company planned to purchase 23andMe and its collection of biological data and samples for $256 million, according to a Monday statement from Regeneron. The deal was brokered in a bankruptcy court auction about two months after the biotech and genomic company voluntarily entered bankruptcy court. 23andMe described Regeneron as a U.S.-based biotech company that develops and commercializes medicines treating serious diseases.

Regeneron will acquire nearly all the company’s assets, including the Personal Genome Service and Total Health and Research Services business lines, according to a Monday statement from 23andMe. The purchase does not include the subsidiary Lemonaid Health, which will slowly close down, 23andMe added.

What’s Regeneron’s plan for the company? The pharma company hoped the purchase would strengthen its ongoing work in genetics-guided research and its development of disease-treating drugs, the company said. Regeneron also planned to prioritize the privacy, security, and ethical use of 23andMe’s customer data, the company added. 23andMe’s genome services will continue uninterrupted for all consumers, the company added.

23andMe echoed this sentiment, noting that the purchase agreement included a promise to follow 23andMe’s privacy policies and keep current security measures in place to protect user data. This transaction will allow 23andMe’s mission to live on while maintaining critical customer privacy and consent protocols, 23andMe Special Committee Board of Directors Chair Mark Jensen said.

Some public officials advised customers to delete their personal data from the company after 23andMe entered bankruptcy court in March. California Attorney General Rob Bonta gave step-by-step instructions for users to delete any data collected and stored by 23andMe. Users could also have their submitted test samples destroyed or revoke previous consent for samples to be used by researchers, Bonta’s office noted.

Dig deeper: Read my previous report for more background on 23andMe’s bankruptcy proceedings.