Drug maker Regeneron Pharmaceuticals will purchase $256 million held by genetic testing company 23andMe through a bankruptcy auction, the companies said on Monday.
Regeneron said it will comply with 23AndMe's privacy policy and applicable laws to use customer data and prepare a detailed introduction to its intended use of court-appointed supervisors.
The bankruptcy proceedings filed in March reviewed lawmakers, warning that genetic data from millions of customers could be sold to unethical buyers.
23AndMe last month agreed to allow court-appointed supervisors to handle the company’s genetic information and its security policies for handling clients during bankruptcy.
The company has collected genetic data from 15 million customers who have ordered its online DNA testing kit and provide saliva samples.
The company has struggled with weak demand for its ancestral test suites and leaked data breaches in 2023 that exposed genetic data from millions of customers.
As part of the agreement, Regeneron will receive all units of 23AndMe, which is planned to drop in addition to telehealth service Lemonade Health.
After the transaction is completed, 23AndMe will continue to operate as a wholly-owned direct or indirect unit of Regeneron.
The two companies are expected to close their transactions in the third quarter of this year.
