Struggling DNA testing firm 23andMe has been acquired by Regeneron Pharmaceuticals for US$256 million.
23andMe chair and member of the Special Committee Board of Directors, Mark Jensen, said the acquisition would help maximise the value of the business and help it live on.
“We are grateful to Regeneron for offering employment to all employees of the acquired business units, which will allow us to continue our mission of helping people access, understand and gain health benefits through greater understanding of the human genome,” Jensen said.
The DNA testing firm filed for bankruptcy in March this year after reporting significant financial losses in recent years.
The company was co-founded in 2006 by Anne Wojkicki who served as CEO until stepping down in March. It then went public in 2021 with a top value of US$6 billion but never turned a profit.
The biggest controversy the company faced was in 2023 when it experienced a data breach that exposed millions of genetic data.
Regeneron said it will use 23andMe data for drug development against a range of diseases, vowing ethical use of users' data.
“Through our Regeneron Genetics Center, we have a proven track record of safeguarding personal genetic data, and we assure 23andMe customers that we will apply our high standards for safety and integrity to their data and ongoing consumer genetic services,” Regeneron co-founder, board co-chair, president and chief scientific officer George D. Yancopoulos said.
“We believe we can help 23andMe deliver and build upon its mission to help people learn about their own DNA and how to improve their personal health, while furthering Regeneron’s efforts to improve the health and wellness of many.”
After completing the transaction in the third quarter of this year, 23andMe will operate as a wholly owned unit of Regeneron.
At the time of writing, the 23andMe Holding Co. (OTCMKTS: MEHCQ) stock price was US$2.70, up $1.80 (200%) today. Its market cap is approximately $72.43 million. Regeneron Pharmaceuticals Inc's stock price (NASDAQ: REGN) was $596.54, up $2.22 (0.37%) today, with a market cap of around $64.41 billion.
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