Struggling DNA testing agency 23andMe to be purchased for $256m

The DNA testing agency 23andMe says it has entered into an settlement to be acquired by Regeneron Prescribed drugs for $256m (£192m).

It comes two months after the corporate filed for chapter safety within the US.

23andMe mentioned Regeneron had dedicated to adjust to its privateness insurance policies as a part of the deal, and that Regeneron has safety controls in place to guard person knowledge.

Final month, the agency agreed to have an ombudsman oversee the safety of person knowledge in response to calls for by a number of state attorneys common within the US.

The officers expressed concern over the potential for unscrupulous patrons to wield the information towards customers.

Regeneron will purchase practically all of 23andMe’s property, the corporate mentioned in an announcement.

Its subsidiary Lemonaid Well being can be wound down beneath the settlement.

23andMe will proceed to function as a wholly-owned unit unit of Regeneron, which mentioned it might use the agency’s knowledge for drug growth.

“We’re happy to have reached a transaction that maximizes the worth of the enterprise and permits the mission of 23andMe to dwell on, whereas sustaining important protections round buyer privateness, selection and consent with respect to their genetic knowledge,” mentioned 23andMe’s board chairman Mark Jensen.

The corporate declined to remark additional when approached by the BBC.

23andMe was co-founded in 2006 by Anne Wojcicki who served as CEO till stepping down in March.

Over time, the corporate obtained high-profile endorsements from celebrities together with Oprah Winfrey, Eva Longoria and Snoop Dogg.

23andMe went public in 2021, which noticed its worth high $6bn – nevertheless it by no means turned a revenue.

The once-celebrated firm has struggled amid weak demand for its testing kits and by no means managed to redefine its enterprise mannequin.

A subscription service failed to realize traction with clients and efforts to make use of its large trove of knowledge to maneuver into drug growth additionally faltered.

Then in 2023 the corporate skilled a knowledge breach that uncovered the genetic knowledge of thousands and thousands of customers.

The agency finally settled a lawsuit alleging it failed to guard the privateness of practically seven million clients whose private data was uncovered.

Hackers gained entry to household timber, delivery years and geographic areas, by utilizing clients’ outdated passwords, however the firm maintains the information stolen didn’t embrace DNA data.

Two months after the settlement, it slashed 200 jobs – about 40% of its workforce.

Ms Wojcicki tried to take the corporate non-public however was not open to a third-party takeover.

When 23andMe filed for chapter safety in March, attorneys common from a number of US states suggested its clients to purge their data from the agency’s database.

On the time, the corporate mentioned it might proceed to guard buyer knowledge as specified by its privateness coverage, and any purchaser of the corporate must abide by legal guidelines that apply to how buyer knowledge is handled.

However its privateness coverage additionally included language which allowed for private data to be accessed, bought, or transferred if it was “concerned in a chapter, merger, acquisition, reorganization, or sale of property”.

23andMe agreed to a court-appointed overseer of buyer genetic knowledge after a number of states alleged the corporate was failing to take knowledge safety severely sufficient.