23andMe assets to be sold to founder’s nonprofit for $305 million

SAN FRANCISCO - Genetic testing company 23andMe Holding Co. (OTC: MEHCQ), currently valued at a market capitalization of $149.27 million, announced Friday it has entered into a definitive agreement to sell substantially all of its assets to TTAM Research Institute, a nonprofit led by company co-founder Anne Wojcicki, for $305 million. According to InvestingPro data, the company has been facing significant financial challenges, with an EBITDA of -$164.89 million in the last twelve months.

The deal emerged from a competitive bidding process between TTAM and Regeneron Pharmaceuticals, Inc. (NASDAQ: REGN), with TTAM’s bid surpassing Regeneron’s previous $256 million offer. The transaction includes 23andMe’s Personal Genome Service, Research Services, and Lemonaid Health business.

TTAM has committed to comply with 23andMe’s existing privacy policies and applicable laws while implementing additional consumer protections. These include honoring customers’ rights to delete their data, providing advance notification of the ownership change, establishing a Consumer Privacy Advisory Board, and offering two years of free identity theft monitoring.

"The competitive bidding process has resulted in significantly more value to our stakeholders while enhancing critical protections around customer privacy, choice and consent," said Mark Jensen, Chair of 23andMe’s Board of Directors.

Wojcicki, who will lead TTAM, stated: "I am thrilled that TTAM Research Institute will be able to continue the mission of 23andMe to help people access, understand and benefit from the human genome."

The transaction, which replaces the previously announced agreement with Regeneron, requires approval from the U.S. Bankruptcy Court for the Eastern District of Missouri. A court hearing is scheduled for June 17, with the deal expected to close in the coming weeks.

23andMe filed for Chapter 11 bankruptcy protection earlier this year. The company’s shares currently trade on the OTC Pink Market, with InvestingPro analysis showing the stock has experienced high volatility and generated revenue of $189.9 million in the last twelve months. InvestingPro subscribers have access to 12 additional key insights about 23andMe’s financial health and market performance through the platform’s comprehensive Pro Research Report.

The announcement was made in a press release statement from the company. For investors seeking deeper analysis of companies in similar situations, InvestingPro offers extensive financial health metrics, valuation analysis, and expert insights across more than 1,400 US stocks.

In other recent news, 23andMe has announced a definitive agreement to sell its assets to Regeneron Pharmaceuticals for $256 million, excluding its Lemonaid Health subsidiary. This transaction, part of 23andMe’s Chapter 11 bankruptcy proceedings, is subject to U.S. Bankruptcy Court approval, with a hearing scheduled for June 17, 2025. The company also plans to delist from the Nasdaq stock exchange, filing a Form 25 with the SEC to remove its securities from listing and registration. This follows the voluntary Chapter 11 bankruptcy proceedings initiated by 23andMe and certain subsidiaries in March 2025. Additionally, a coalition of attorneys general, led by New York Attorney General Letitia James, has filed a lawsuit against 23andMe to prevent the sale of customers’ genetic data without consent. Meanwhile, 23andMe has introduced a new genetic report for its 23andMe+ Premium members, assessing the likelihood of elevated homocysteine levels, a potential health risk. This report includes an optional blood test for further investigation. Lastly, New York and California attorneys general have advised customers to delete their accounts to protect their genetic data in light of the company’s financial difficulties.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.