12 Million People Gave Their DNA to 23andMe Before It Went Bankrupt. Their Data Is About to Get a New Owner

For years, spitting into a tube represented an enticing promise: the chance to discover your ancestry and understand your genetic predispositions. You could even find lost relatives around the world–all from the comfort of your home. One company behind this phenomenon was 23andMe, which successfully turned genetics into a mass consumer product.

However, this story has taken a new turn. Regeneron Pharmaceuticals has reached an agreement to acquire the main assets of 23andMe for $256 million, according to an official statement from the drugmaker. This transaction is still subject to approval by the bankruptcy court and regulators. At stake is a platform that has managed the DNA of millions of people around the world.

An end foretold. The decline of 23andMe hasn’t been sudden. In recent years, the company has seen its valuation drop from more than $6 billion to fighting for survival. It attempted to pursue a more ambitious model: developing medicines, offering subscription-based medical consultations, and expanding digital health services. However, the plan failed to gain traction. According to The Wall Street Journal, the company burned through more than $1 billion and ultimately had to offer part of its assets under limited terms.

The sale agreement doesn’t encompass the entire business. Regeneron will retain key components, including its direct-to-consumer genomics service, the biobank of genetic samples, and the research and total health divisions. However, telemedicine subsidiary Lemonaid Health, which was acquired for $400 million, will be excluded from this transaction and will be closed.

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Privacy remains a significant concern. Regeneron has pledged to uphold current data use policies. The company has also committed to independent oversight, as established by the judicial framework governing the process. However, doubts linger about how it’ll manage one of the world’s largest genetic databases.

These concerns aren’t new. In 2023, 23andMe experienced a major data breach that affected 6.9 million individuals. According to TechCrunch, attackers gained access to the profiles of users who had enabled the DNA Relatives feature. They obtained names, locations, and the percentage of DNA shared with relatives. The company attributed the breach to users reusing passwords, but the damage had already been done.

Anne Wojcicki, a pivotal figure. 23andMe co-founder Anne Wojcicki was the public face of the company and a visionary in personalized health. However, she was also responsible for business decisions that ultimately led to challenges for 23andMe. Wojcicki’s plan was to transform the company into a comprehensive provider of medical services, but this vision didn’t come to fruition.

She attempted to regain control over the company, but legal proceedings hampered them. According to The Wall Street Journal, her preferred voting shares were voided, and the board of directors rejected her proposals.

Wojcicki invested heavily in DNA as a strategic asset, and for a time, her approach seemed promising. The company she helped establish changed the way millions of people view their health. However, it also highlighted the significant legal, ethical, and technological risks associated with maintaining a genetic database.

A new phase. Regeneron wants to leverage 23andMe’s powerful platform, well-recognized brand, and vast genetic dataset. In its official statement, the company expressed its intention to continue servicing current users and exploring new avenues for personalized medicine.

Image | Warren Umoh

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