By: Nick Gambino
23andMe filed for Chapter 11 Bankruptcy two months ago, casting doubt on the future of the genomics company as well as the DNA data from 15 million users. Now it’s been announced that the pharmaceutical company Regeneron is buying 23andMe for $256 million.
23andMe, along with other companies like Ancestry, provides a genome service that allows customers to learn more about their genetic history through the use of self-testing saliva kits.
It’s a pretty simple system. Receive the small kit in the mail, follow the brief instructions which include spitting into a tube, seal it up and send it back.
The company then analyzes the DNA in your saliva and breaks it down into easily assimilable reports. Customers can learn about their DNA history and where their relatives and ancestors came from. You might be 51% Italian, 15% Scottish, etc. all the way down to 0.8% North African.
They even include a DNA relatives feature that allows users to connect to their blood relatives no matter how far removed. With 15 million customers in the database, you have the potential to link up with a ton of relatives you never even knew existed. I ran into people in large family reunions I only knew from 23andMe.
Making DNA sequencing a public-facing service that provides deep insight into your past is a smart move, but the company struggled to turn a profit. A data breach in 2023 certainly dampened public trust. This isn’t credit card info or even social security numbers but the makeup of who you are as a person.
Having sensitive information exposed by hackers wasn’t their only problem. People were worried the company would try and sell that same data “legally.” While it would have certainly given them another revenue option, it was a controversial move and without a monthly subscription, there wasn’t a lot more they could do. Going public didn’t seem to help much either.
After filing bankruptcy they looked to sell off their company either as a whole or in parts. Regeneron Pharmaceuticals won out in the auction. The new owners have stated their intention in continuing the genome services uninterrupted.
Take a look at our other health news coverage. From biotech shakeups to breakthroughs in wellness and medicine, we’re keeping tabs on what’s next in the world of health.
