Regeneron to buy 23andMe for $256 million

(CBS, KYMA/KECY) - Regeneron has agreed to buy 23andMe, the once buzzy genetic testing company, out of bankruptcy for $256 million under a court-supervised sale process.

23andMe declared bankruptcy in March and announced it would seek a buyer, while also saying co-founder and CEO Anne Wojcicki would resign.

Under the proposed agreement with Regeneron, the Tarrytown, New York, drugmaker will acquire 23andMe's assets, including its personal genome service and total health and research services.

Regeneron said Monday it will abide by 23andMe's privacy policies and applicable law to protect customer data.

Data privacy experts had raised concerns about 23andMe's storehouse of data for about 15 million customers, including their DNA.

23andMe's consumer-genome services will continue interrupted, the purchaser said. However, Regeneron will not acquire 23andMe's Lemonaid Health telehealth business.

"We have deep experience with large-scale data management," Regeneron co-founder George Yancopoulos said in a statement.

The company, according to Aris Baras, MD, Senior Vice President and Head of the Regeneron Genetics Center, "has a proven track record of safeguarding the genetic data of people across the globe, and, with their consent, using this data to pursue discoveries that benefit science and society."

23andMe offers consumer services that provide customers with information on their ancestry and genetic health profile, including the risk of passing on certain conditions to their children. It also has a therapeutics arm that researches and develops treatments for cancers, immune diseases and other conditions.

"We are pleased to reach an agreement with a science-driven partner that maintains our team and helps ensure our mission will carry forward," 23andMe interim CEO Joe Selsavage said in a statement. "With the support of Regeneron and their deep experience in genetic sequencing, testing and discovery, we look forward to continuing to help people access and understand the human genome for the benefit of customers and patients."

In a separate statement, Mark Jensen, Chair and member of the Special Committee of the Board of Directors of 23andMe said the following:

"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. 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."