In a surprising turn of events in the biotech sector, pharmaceutical giant Regeneron Pharmaceuticals has announced its plans to acquire struggling DNA testing firm 23andMe for $256 million following the latter’s bankruptcy filing earlier this year. The acquisition, pending regulatory approval, is set to reshape the landscape of consumer genetics and precision medicine.
Once a poster child for direct-to-consumer genetic testing, 23andMe soared to popularity in the late 2010s by offering affordable at-home DNA kits that allowed customers to explore their ancestry and assess genetic health risks. However, despite its early success and widespread brand recognition, the company struggled to turn consumer interest into sustainable revenue growth. Mounting operational costs, declining kit sales, and growing scrutiny over data privacy eventually forced the company into financial distress, leading to a Chapter 11 bankruptcy filing in early 2025.
Regeneron, a leading player in genetics-driven drug development, sees the acquisition as a strategic move to gain access to 23andMe’s vast genomic database of over 14 million users. The company emphasized that this purchase will enhance its research capabilities, especially in areas such as rare disease treatment, gene-targeted therapies, and biomarker discovery.
“This is more than an acquisition—it’s an integration of two visions,” said Dr. Leonard Schleifer, CEO of Regeneron, in a statement on Monday. “The genetic insights collected by 23andMe, when ethically and securely used in combination with our drug discovery platforms, will enable us to develop more precise and effective treatments for a wide range of diseases.”
As part of the deal, Regeneron will assume ownership of 23andMe’s intellectual property, data infrastructure, and research partnerships, while maintaining a limited consumer-facing presence. Though Regeneron has assured that existing privacy agreements will remain in place, privacy advocates have raised concerns over potential misuse of consumer DNA data in pharmaceutical research.
Anne Wojcicki, co-founder and CEO of 23andMe, is expected to step down from her role following the transaction. In a statement posted on the company’s website, she called the acquisition “a bittersweet but ultimately hopeful outcome,” citing Regeneron’s deep commitment to genetics-based innovation.
“While our mission to help people access, understand, and benefit from the human genome hit commercial headwinds, I believe Regeneron is uniquely equipped to carry our legacy forward in a way that maximizes both scientific value and human impact,” Wojcicki wrote.
The $256 million all-cash deal marks a dramatic shift in fortunes for 23andMe, which was once valued at over $3.5 billion during its public debut via SPAC merger in 2021. The company’s stock had plummeted more than 90% by the time of its bankruptcy filing.
For Regeneron, this acquisition is part of a broader push into data-driven drug development. The company already operates one of the world’s largest genetic research initiatives in collaboration with the UK Biobank, and the addition of 23andMe’s dataset will significantly expand its reach.
Industry analysts say the move may prompt similar acquisitions as pharmaceutical firms race to secure proprietary genetic data that can accelerate the path from discovery to FDA approval. However, it also raises urgent questions about data ownership, informed consent, and transparency in how consumer genetic information is monetized.
Pending regulatory review, the transaction is expected to close in the second half of 2025. If completed, the acquisition could signal a new chapter in the intersection of health tech and big pharma—where consumer data and drug development become ever more closely entwined.