Regeneron Pharmaceuticals has announced its acquisition of genetic testing company 23andMe for $256 million through a bankruptcy auction, marking a significant expansion of its footprint into consumer genetics. The deal, expected to close in the third quarter of 2025, includes all of 23andMe’s business units except its telehealth subsidiary, Lemonaid Health, which the company will begin winding down.

23andMe has collected DNA data from 15 million customers who purchased its at-home testing kits. The firm filed for bankruptcy in March following declining demand for its ancestry services and a 2023 data breach that compromised millions of user records. These developments raised alarms among lawmakers concerned about the fate of sensitive genetic information.

Under the agreement, a court-appointed overseer will monitor 23andMe’s handling of customer data during the transition. Regeneron stated it will adhere to existing privacy policies and comply with all applicable laws regarding the use of genetic data. The company has pledged full transparency and said it is prepared to explain its intentions for the data to the court.

Following the transaction, 23andMe will continue operating as a wholly owned subsidiary of Regeneron, which plans to integrate the company’s vast genetic database into its pharmaceutical research and development efforts. The acquisition underscores growing interest among biotech firms in consumer genomics and the potential to leverage large-scale DNA data to drive innovation in personalized medicine.