Regeneron Pharmaceuticals’ $256 million bid was selected as the winner in 23andMe’s bankruptcy auction. While drug research never became a major focus for the genetic testing company, this area is now gaining new momentum through its integration with Regeneron Genetics Center—a Regeneron subsidiary specializing in genetic data analysis for drug research and development. With this acquisition, Regeneron, which has been leveraging genetic data in drug discovery for over a decade, is significantly expanding its capabilities by acquiring assets from 23andMe.

This acquisition followed Regeneron’s successful bid during 23andMe’s Chapter 11 bankruptcy auction. According to a regulatory filing by 23andMe, Regeneron outbid six other qualified contenders. Although the identities of the other bidders remain undisclosed, 23andMe co-founder and former CEO Anne Wojcicki publicly announced her resignation in March to participate in the bidding process, hoping to take the company private—a plan that ultimately did not succeed over the past year.

Regeneron is acquiring “substantially all” of 23andMe, including its Personal Genome Service, Total Health and Research Services, Biobank, and related assets. The Tarrytown, New York-based pharmaceutical company assured that 23andMe’s consumer genome testing services will continue without interruption. Additionally, Regeneron committed to adhering to 23andMe’s privacy policies and all applicable data protection laws. The company also stated it is ready to disclose its plans for using customer data and privacy safeguards for review by an independent Customer Privacy Ombudsman appointed by the court, as well as other stakeholders. Not included in the sale is Lemonaid Health, an online pharmacy acquired by 23andMe in 2021, which will be phased out after the transaction closes.

Although 23andMe is widely recognized for its consumer genetics testing, it has also attempted to use its data for pharmaceutical research by providing de-identified genetic information to drug companies. This segment, however, never became a major part of its business, but it is now expected to play a crucial role in Regeneron’s strategy.

Regeneron launched the Regeneron Genetics Center (RGC) in 2013, a wholly owned subsidiary that houses a database of over 2.7 million sequenced exomes linked to de-identified health data. By comparison, 23andMe’s biobank contains genetic data from more than 15 million customers.

RGC employs advanced data analytics and machine learning to uncover links between genes and diseases, supporting Regeneron’s drug discovery efforts. According to Regeneron’s annual report, RGC has identified more than 30 novel genetic targets, which remain confidential as ongoing research continues utilizing Regeneron’s proprietary technologies. The acquisition adds 23andMe’s extensive genetic dataset to RGC’s research pipeline. George Yancopoulos, Regeneron’s President and Chief Scientific Officer, highlighted the company’s expertise in managing large-scale genetic data from millions of consented participants, which facilitates secure, future medical breakthroughs. He also expressed confidence that Regeneron can help 23andMe advance its mission of empowering individuals to understand their DNA and improve personal health while enhancing Regeneron’s broader efforts to revolutionize disease treatment and prevention through genetics.

The acquisition is pending approval from the bankruptcy court and regulators, with a hearing scheduled for June 17. Regeneron anticipates closing the deal in the third quarter of this year.