A bankruptcy judge has recently approved the sale of popular genetic testing company 23andMe to the nonprofit TTAM Research Institute, owned by co-founder and former CEO Anne Wojcicki. This acquisition ensures that the DNA of the company’s customers will not be transferred to a third party, maintaining the privacy and security of their genetic information.
23andMe, a publicly traded company, is known for collecting saliva-based DNA from customers through its testing kits to provide insights into ancestry and potential health risks. The company stores users’ data and spit samples, then analyzes their genetic information to offer personalized reports.
TTAM, named after “twenty-three and me,” has agreed to purchase nearly all of 23andMe’s assets for $305 million, a deal that has been approved by Judge Brian Walsh of the U.S. Bankruptcy Court in the Eastern District of Missouri. This acquisition marks a significant milestone for the company and its customers, ensuring the protection of their sensitive genetic data.
The larger trend surrounding this sale involves 23andMe’s filing for Chapter 11 in March, leading to the resignation of Anne Wojcicki as CEO. Joe Selsavage was appointed as the interim CEO during the bankruptcy proceedings. Initially, New York-based Regeneron Pharmaceuticals won an auction to acquire the company for $256 million, but a group of states raised concerns about the potential sale of customers’ genetic data without explicit consent.
Several states, including Kentucky, California, Tennessee, Texas, and Utah, have expressed opposition to the sale, citing concerns about the handling of genetic information as a sensitive and unique asset. Pennsylvania Attorney General Dave Sunday and a coalition of attorneys general have voiced their support for the sale, emphasizing the importance of protecting consumer data.
Following the bankruptcy announcement, California Attorney General Rob Bonta issued a consumer alert advising users to request the deletion of their genetic data. Bonta’s office continues to object to the sale to TTAM, citing the Genetic Information Privacy Act in California, which requires companies to obtain opt-in consent from customers before selling their genetic information to third parties.
In a separate incident in 2023, 23andMe experienced a significant data breach affecting approximately seven million users. The breach exposed user data, including ancestry and health-related information, resulting in a class-action lawsuit and a proposed settlement of $30 million. This breach highlights the importance of robust security measures in safeguarding sensitive genetic data and maintaining the trust of customers.
Overall, the sale of 23andMe to TTAM Research Institute marks a pivotal moment for the company and its customers, ensuring the protection of their genetic information and privacy in an increasingly digital age.
