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23andMe co-founder and former CEO Anne Wojcicki has agreed to repurchase the bankrupt genetics firm for $305 million, after her nonprofit outbid pharmaceutical giant Regeneron in a court-supervised auction.
The deal, announced in a June 13 press release, was struck between 23andMe and TTAM Research Institute, a California-based medical research organization led by Wojcicki. It nullifies a previously announced $256 million acquisition agreement with Regeneron after the court reopened bidding in response to Wojcicki’s higher offer.
The transaction, which remains subject to final court approval, covers nearly all of 23andMe’s assets, including its Personal Genome Service, research operations, and Lemonaid Health telemedicine unit.
California-based 23andMe filed for bankruptcy in March following a sharp drop in demand after a major 2023 data breach exposed the genetic and personal information of millions of users. The breach intensified scrutiny over the company’s handling of sensitive health and ancestry data, and led to a lawsuit that seeks to prevent 23andMe from selling the personal genetic data in its possession without customer consent.
In announcing the sale, 23andMe Chair Mark Jensen said Wojcicki’s winning bid not only delivers “significantly more value” to stakeholders, but also enhances “critical protections around customer privacy, choice, and consent” regarding their genetic information.
As part of the deal, Wojcicki’s nonprofit has promised to honor 23andMe’s existing privacy policies and adopt new safeguards, including the creation of a Consumer Privacy Advisory Board, restrictions on future data transfers, and a continued option for customers to delete their data and opt out of research participation. TTAM will also provide two years of free identity theft monitoring to users.
Wojcicki, who stepped down as CEO before the bankruptcy filing, praised the agreement and highlighted its focus on consumer privacy.
“I am thrilled that TTAM Research Institute will be able to continue the mission of 23andMe to help people access, understand, and benefit from the human genome,“ Wojcicki said in a statement. ”We believe it is critical that individuals are empowered to have choice and transparency with respect to their genetic data and have the opportunity to continue to learn about their ancestry and health risks as they wish.”
A Regeneron spokesperson told The Wall Street Journal that the company declined to submit a new bid based on its assessment of 23andMe’s value. However, Regeneron remains the backup bidder, with a court hearing scheduled for June 17 to consider final approval of the transaction.
Wojcicki’s winning bid caps months of turmoil surrounding 23andMe’s bankruptcy, as the company came under fire from customers and regulators over the handling and potential sale of sensitive genetic data.
Two days before the company filed for bankruptcy, California Attorney General Rob Bonta urged customers to remove their data.
“Given 23andMe’s reported financial distress, I remind Californians to consider invoking their rights and directing 23andMe to delete their data and destroy any samples of genetic material held by the company,” Bonta said in a March 21 statement.
Roughly 15 percent of 23andMe’s customers have requested account closures in response to the company’s bankruptcy and planned sale, according to the firm.
Last week, a coalition of 27 states and the District of Columbia filed a lawsuit against 23andMe, seeking to block the sale of its customers’ private data.
“This isn’t just data–it’s your DNA. It’s personal, permanent, and deeply private,” Oregon Attorney General Dan Rayfield said in a statement. “People did not submit their personal data to 23andMe thinking their genetic blueprint would later be sold off to the highest bidder.”
According to the lawsuit, 23andMe possesses biological samples and genetic data from more than 15 million customers, collected through at-home DNA test kits and used to analyze ancestry, familial lineage, and health risk indicators.
Tom Ozimek is a senior reporter for The Epoch Times. He has a broad background in journalism, deposit insurance, marketing and communications, and adult education.
