23andMe was once one of the most exciting companies in Silicon Valley. And now, a pharmaceutical giant is buying them out of bankruptcy.
What’s happening:
- Regeneron Pharmaceuticals (NASDAQ: REGN) has announced they will purchase 23andMe for $256M USD through a bankruptcy auction
Why it matters:
- 23andMe built one of the largest datasets of individual DNA samples ever through their highly popular direct to consumer testing kits prior to going into bankruptcy
Going deeper:
- Regeneron Pharmaceuticals will acquire all existing intellectual property and proprietary data from 23andMe as part of the new acquisition
- 23andMe had more than 15M individuals provide DNA samples since the initial launch of the company, with the vast majority of customers also consenting to their data being used for scientific research purposes
The intrigue:
- Regeneron Pharmaceuticals has publicly stated they plan to leverage the extensive genetic database of 23andMe to accelerate the development of entirely new drugs and therapeutic treatments
The fine print:
- The acquisition will still ultimately require final approval from the United States Bankruptcy Court for the Eastern District of Missouri before the deal is officially able to close
