Drugmaker Regeneron PharmaceuticalsĀ will buy genetic testing firm 23andMe Holding for $256Ā million USDĀ through a bankruptcy auction, the companies said onĀ Monday.
Regeneron said it will comply with 23andMe’s privacyĀ policies and applicable laws with respect to the use of customerĀ data and that it is ready to detail its intended use of the dataĀ to a court-appointed overseer.
The bankruptcy proceedings, filed in March, had drawnĀ scrutiny from lawmakers who warned that millions of customers’Ā genetic data could be sold to unscrupulous buyers.
23andMe last month agreed to allow a court-appointedĀ overseer for the company’s handling of customers’ geneticĀ information and its security policies during the bankruptcy.
The company has collected genetic data from 15 millionĀ customers who ordered its DNA testing kits online and providedĀ saliva samples.
The company had been struggling with weak demand for itsĀ ancestry testing kits and a data breach in 2023 that exposedĀ millions of customers’ genetic data.
As part of the agreement, Regeneron will acquire all unitsĀ of 23andMe, except telehealth service Lemonaid Health, which theĀ genetic testing firm plans to wind down.
After the transaction completes, 23andMe will continue toĀ operate as a wholly owned direct or indirect unit of Regeneron,Ā the companies said.
The companies expect to close the deal in the third quarter of this year.Ā