Following 23andMe’s bankruptcy, Regeneron Pharmaceuticals is set to purchase the DNA testing company.
The bankruptcy led to widespread uncertainty regarding the security of the data, but Regeneron is pledging to keep the information private and protected.
Despite being a well-known direct-to-consumer DNA testing company, 23andMe has faced challenges in achieving profitability since going public in 2021.The group first attempted a buyout in April 2024, but was unsuccessful, leading them to file for bankruptcy in March 2025.
Now, Regeneron Pharmaceuticals has plans to acquire 23andMe’s assets for $256 million.
23andMe has remained popular among consumers for shedding light on family histories and genetics. Despite the popularity, the company has been plagued with revenue loss and privacy concerns. In 2023, for instance, hackers were able to access 6.9 million individuals’ data. Hackers used tactics like credential stuffing to gain access to accounts, and proceeded to post some of the information online.
Once 23andMe went bankrupt, consumers and lawmakers were even more concerned about privacy. However, in its bankruptcy proceedings, 23andMe required all bidders to comply with its privacy policies and a court-appointed ombudsman will assess the deal.
In a statement, Federal Trade Commission Chairman Andrew Ferguson said the FTC would be keeping a close eye on the bankruptcy proceedings. He stated, “As you may know, 23andMe collects and holds sensitive, immutable, identifiable personal information about millions of American consumers who have used the Company's genetic testing and telehealth services.” He added that the FTC would be monitoring the transfer of sensitive personal information. 23andMe data will not be shared with insurance companies, employers, public databases, or law enforcement without a court order or subpoena.
Aris Baras, Senior Vice President and Head of the Regeneron Genetics Center stated, “We assure 23andMe customers that we are committed to protecting the 23andMe dataset with our high standards of data privacy, security and ethical oversight and will advance its full potential to improve human health.”
Regeneron plans to retain all current employees and operate 23andMe as a wholly-owned subsidiary, meaning that all of the company’s consumer genome services will continue. 23andMe’s telehealth subsidiary, Lemonaid Health, however, is not part of the deal.
As the transition takes place, consumers may not immediately notice a difference. However, Regeneron will likely take steps to make 23andMe more profitable, which could lead to operational changes down the line.
Credential stuffing is when a hacker attempts to login with multiple passwords, usually using automation, until they are successful.
Regeneron stated that they hope to continue delivering services that help individuals learn about their own DNA and personal health. Regeneron hopes to build on 23andMe and improve its offerings.