Regeneron, a pharmaceutical company to buy bankrupt 23andMe. How about your data?

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Genetic testing company 23AndMe is expected to be acquired by pharmaceutical company Regeneron Pharmaceuticals after its bankruptcy in March, the company announced on Monday, May 19th.

Regeneron purchased the development company for $256 million at a bankruptcy auction with the aim of using genomic data to promote Durcty Discovery, the company said in a statement Monday.

More importantly, for consumers who have privacy concerns during the process, the pharmaceutical company has committed to abide by 23AndMe’s existing privacy policy, saying it “prioritizes the privacy, security and ethical use of 23andMe’s customer data.”

“As a world leader in human genetics, Regeneron Genetics Center has a proven track record of protecting genetic data for people around the world. He also said he is Senior Vice President of Regeneron Genetics Center and Head of the Statement, using this data to pursue discoveries that benefit science and society.

23AndMe will continue to operate as a personal genomics service. It first gained notoriety as the first company to allow customers to send DNA through household swabs and receive digital maps of their ancestors in return.

The company filed for Chapter 11 bankruptcy in March, allowing later court-appointed supervisors to monitor the use of genetic data collected from 15 million users through the sale. Regeneron has agreed to allow supervisors to confirm the intended use of that data.

Since the October 2023 data breaches affected 6.9 million customers, 23andMe has faced scrutiny from its customers and lawmakers.

In a statement Monday, the 23AndME Chair of the board’s special committee said “we are pleased to have reached a transaction that maximizes the value of our business and allows us to maintain our choices and consent regarding client privacy, choices and genetic data while maintaining our mission.”

The statement also thanked Regeneron for expanding the recruitment to employees in the affected department.

This sale is subject to approval through bankruptcy proceedings and related regulatory bodies. It is expected to close in the third quarter.



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