Regeneron Pharmaceuticals (NASDAQ:REGN) saw its stock rise 2% after announcing it had secured a winning bid to acquire key assets of genetic testing company 23andMe through a bankruptcy auction. The $256 million deal is poised to significantly enhance Regeneron’s capabilities in genetics-driven research and drug development.
The acquisition includes 23andMe’s core business lines—such as its Personal Genome Service, Total Health offerings, Research Services, and its large-scale Biobank. Pending court and regulatory approvals, the transaction is expected to finalize in the third quarter of 2025.
By incorporating 23andMe’s vast genetic data infrastructure into its own pipeline, Regeneron aims to bolster its efforts in discovering and developing treatments for serious illnesses. The company emphasized its commitment to data privacy, pledging to work with a court-appointed Customer Privacy Ombudsman to ensure the protection of consumer information.
Dr. George D. Yancopoulos, Regeneron’s President and Chief Scientific Officer, highlighted the company’s early leadership in applying genomics to drug discovery. He noted that the integration of 23andMe’s data would strengthen Regeneron’s mission to advance personalized medicine. Aris Baras, MD, who heads the Regeneron Genetics Center, echoed this sentiment, reaffirming a mutual dedication to privacy and ethical data use.
Notably, the acquisition does not include 23andMe’s Lemonaid Health telehealth business, which will remain separate. 23andMe’s direct-to-consumer genetic testing services will continue to operate under the Regeneron umbrella, with more information about post-deal operations to be shared once the transaction is finalized.
Joe Selsavage, interim CEO of 23andMe, welcomed the deal, pointing to Regeneron’s strong track record in genetic research as a key advantage for continuing the company’s mission of delivering personal health insights through genomics.
Legal counsel for Regeneron in the transaction is being handled by Wachtell, Lipton, Rosen & Katz. Market watchers are now focusing on how the acquisition could boost Regeneron’s innovation pipeline and long-term growth prospects.