By Michelle Chapman, The Related Press
Biotechnology firm Regeneron Prescription drugs is shopping for 23andMe for $256 million, two months after the genetic testing firm filed for Chapter 11 chapter safety.
In March 23andMe mentioned that it was trying to promote “substantially all of its assets” by means of a court-approved reorganization plan. Its co-founder and CEO Anne Wojcicki additionally resigned from the highest submit, however remained as a board member.
Additionally see: 23andMe customers alerted they might wish to delete genetic information. Right here’s easy methods to do it
23andMe has confronted an unsure future for a while. Past battles to go non-public, the corporate struggled to discover a worthwhile enterprise mannequin since going public in 2021. Privateness considerations associated to clients’ genetic info have additionally emerged, notably spanning from a 2023 information breach — together with questions round what new possession might imply for customers’ information.
The proposed transaction with Regeneron contains 23andMe’s private genome service and whole well being and analysis companies. It doesn’t embody the Lemonaid Well being subsidiary, a telehealth companies supplier which 23andMe plans to wind down.
“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,” Regeneron co-founder, board co-chair and Chief Scientific Officer George Yancopoulos mentioned in a press release.
Regeneron mentioned Monday that it’ll adjust to 23andMe’s privateness insurance policies and relevant regulation, course of all buyer private information in accordance with the consents, privateness insurance policies and statements, phrases of service, and notices at the moment in impact and have safety controls in place designed to guard such information.
“We are pleased to have reached a transaction that maximizes the value of the business and enables the mission of 23andMe to live on, while maintaining critical protections around customer privacy, choice and consent with respect to their genetic data,” mentioned Mark Jensen, chair and member of the particular committee of 23andMe’s board.
Regeneron can be maintaining all of 23andMe’s workers, Jensen added.
As a part of the court-supervised sale course of, 23andMe required all bidders to ensure that they are going to adjust to its privateness insurance policies and relevant regulation.
Regeneron mentioned that its proposed deal aligns with 23andMe’s privateness assertion, however {that a} court-appointed, unbiased client privateness ombudsman will even look at the transaction and any potential affect on customers’ privateness. The ombudsman will current a report back to the courtroom by June 10.
A courtroom listening to to contemplate approval of the transaction is at the moment scheduled for June 17. The deal, which nonetheless wants approval from the U.S. Chapter Courtroom for the Jap District of Missouri, is predicted to shut within the third quarter.
Shares of Regeneron fell barely earlier than the market open.
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