DNA testing firm 23andMe has agreed to be acquired by Regeneron Pharmaceuticals for $256m (£192m). The deal comes two months after the company filed for bankruptcy protection in the US. Regeneron will acquire nearly all of 23andMe’s assets, including its subsidiary Lemonaid Health, which will be wound down.
As part of the agreement, Regeneron has committed to comply with 23andMe’s privacy policies and has security controls in place to protect user data. However, experts have raised concerns about the potential for unscrupulous buyers to misuse customer data.
Dr Jennifer King, a privacy expert at Stanford Institute for Human-Centered Artificial Intelligence, warned that Regeneron’s profit-driven mission may be clearer to customers now that it is “in the sole control of a company doing genetic research for pharmaceutical development.”
23andMe has struggled in recent years due to weak demand for its testing kits and failed business models. The company went public in 2021 but never turned a profit, despite having a valuation of over $6bn.
The firm’s data breach in 2023 exposed the genetic data of millions of users, leading to a settlement with customers who claimed the company failed to protect their privacy. The deal also includes an ombudsman to oversee the protection of user data.
Regeneron said it will use 23andMe’s data for drug development, but critics argue that this may not be in the best interests of customers. The acquisition has raised concerns about the future of customer data and the potential risks associated with it.
Source: https://www.bbc.com/news/articles/c0ln0e5g6kgo