Regeneron Pharmaceuticals, a renowned biotechnology company known for its extensive genetics research, has made a bold move by announcing its plans to acquire the DNA testing firm 23andMe out of bankruptcy. This announcement comes after Regeneron emerged as the successful bidder in a court-run auction, signaling its intent to leverage the vast genetics data collected by 23andMe to discover new drug targets.
The proposed acquisition, which is still subject to court and regulatory approvals, represents a strategic opportunity for Regeneron to capitalize on the wealth of genetics data amassed by 23andMe. By continuing 23andMe’s consumer genome services without interruption, Regeneron aims to further its mission of using large-scale genetics research to enhance healthcare outcomes and disease prevention on a broader scale.
George Yancopoulos, co-founder and chief scientist of Regeneron, expressed confidence in the company’s ability to support 23andMe’s mission of empowering individuals to learn about their DNA and improve their health. The deal, valued at $256 million, will encompass the acquisition of “substantially all” of 23andMe’s assets, including its personal genome service, health and research service, and biobank. Additionally, Regeneron has committed to offering jobs to all employees within these business units.
While Regeneron’s acquisition does not include 23andMe’s telehealth business Lemonaid Health, the company remains focused on closing the deal in the third quarter pending necessary approvals. An ombudsman appointed by the bankruptcy court will review the transaction’s potential impact on the privacy of individuals who have previously utilized 23andMe’s genetic sequencing services, with a report due by June 10 and a hearing scheduled for June 17.
Aris Baras, head of the Regeneron Genetics Center, emphasized the company’s commitment to safeguarding the 23andMe dataset with rigorous data privacy standards and ethical oversight. Since its establishment in 2013, the Regeneron Genetics Center has made significant strides in identifying novel drug targets through genome sequencing. These discoveries include gene mutations associated with lower obesity risk, liver disease, and specific variants linked to breast and ovarian cancers.
The acquisition marks the conclusion of a remarkable journey for 23andMe, once valued at $6 billion and synonymous with personal DNA testing. Co-founded by Anne Wojcicki in 2006, the company aspired to leverage genetic data for drug development, forging partnerships with industry giants like GSK and developing its pipeline of experimental medicines. However, financial challenges and declining demand for consumer tests led to 23andMe’s bankruptcy filing in March, culminating in its acquisition by Regeneron.
As Regeneron prepares to integrate 23andMe’s assets and expertise into its operations, the acquisition signifies a new chapter in the convergence of genetics research and healthcare innovation. With a shared commitment to advancing human health through genetic insights, Regeneron and 23andMe are poised to make significant contributions to the future of personalized medicine and disease prevention.
