23andMe’s Rise and Decline: Regeneron Purchases Genetic Testing Leader Along with Its DNA Repository
Initially a pioneer in consumer genetic testing, 23andMe epitomized a Silicon Valley triumph. The firm became well-known, went public, and at its zenith was valued at $6 billion. However, that success was not enduring.
Gradually, 23andMe grappled with plummeting sales of its DNA testing kits, struggled to attract new investments, and failed to create a product capable of yielding steady, ongoing income. Additionally, the company suffered a major data breach that jeopardized sensitive user data, including genetic profiles.
In March 2025, 23andMe declared bankruptcy and commenced the liquidation of its assets. But beyond the financial downturn, a more pressing issue emerged: What would become of the genetic data belonging to millions of customers? This data extended beyond mere usernames and email addresses—23andMe had gathered intricate DNA profiles from over 15 million individuals.
That inquiry has now been resolved.
Regeneron Enters the Scene
On Monday, Regeneron Pharmaceuticals revealed its intention to acquire the bulk of 23andMe’s assets for $256 million. This agreement encompasses 23andMe’s Personal Genome Service, its Total Health and Research Services divisions, and notably, the vast repository of customer DNA and genetic data.
Nevertheless, Regeneron will not be acquiring 23andMe’s telehealth platform, Lemonaid Health, which is anticipated to close down.
Regeneron, a biotechnology firm situated in Tarrytown, New York, is recognized for its development of treatments for cancer, heart conditions, and other serious illnesses. With a valuation exceeding $64 billion, the company holds a significant position in the pharmaceutical sector. It gained widespread notice in 2020 when its experimental COVID-19 treatment, REGN-COV2, was administered to then-President Donald Trump.
The acquisition of 23andMe was conducted through a court-supervised process, and Regeneron is obligated to comply with all current privacy policies and relevant data protection regulations.
Privacy Issues and Public Response
The transfer of such sensitive genetic data to a major pharmaceutical corporation has raised alarms among privacy advocates and consumers alike. Detractors express concern regarding the usage of the data and whether customer consent will genuinely be honored.
In a press release, Regeneron aimed to allay public fears, asserting it would “adhere to the Company’s privacy policies” and manage all personal data “in alignment with the consents, privacy policies and statements, terms of service, and notices currently in effect.” The company also highlighted its “proven history of protecting personal genetic information” and vowed to uphold the same standards for 23andMe’s database.
To further alleviate privacy concerns, a court-appointed expert will provide a report on the potential privacy and security ramifications of the acquisition by June 10.
Despite these reassurances, skepticism persists. J.B. Branch, an advocate for Big Tech accountability with the consumer rights organization Public Citizen, condemned the sale, stating, “Your DNA and your family health history should not be a corporate asset.” He added, “Naturally, Regeneron will assure to ‘respect consent’ and ‘uphold privacy policies.’ Those are merely minimal legal obligations. Yet repeatedly these companies disappoint consumers.”
The Broader Context
While the decline of 23andMe signifies the close of a chapter in consumer genetics, the ramifications of this acquisition reach well beyond a single company. The destiny of millions of individuals’ genetic data now rests with a pharmaceutical titan, reigniting discussions about data ownership, privacy, and the ethics surrounding the commercialization of personal health information.
As the situation unfolds, one thing is evident: the dialogue concerning genetic privacy is far from concluded.