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SAN FRANCISCO - In a definitive agreement announced today, 23andMe Holding Co. (OTC: MEHCQ), a prominent human genetics and biotechnology firm with annual revenue of $208.78 million, is set to sell its assets to Regeneron Pharmaceuticals, Inc. (NASDAQ: REGN). According to InvestingPro data, 23andMe has been quickly burning through cash, with an EBITDA of -$219.67 million in the last twelve months. The transaction, valued at $256 million - significantly above 23andMe’s current market capitalization of $24.14 million - will transfer substantially all assets of 23andMe, excluding its Lemonaid Health subsidiary, to Regeneron, a U.S.-based biotech company recognized for developing transformative medicines for serious diseases. InvestingPro subscribers can access 12+ additional key insights about 23andMe’s financial health and valuation metrics in the comprehensive Pro Research Report.
The sale, which occurred through an auction on May 16, 2025, as part of 23andMe’s Chapter 11 bankruptcy proceedings, is subject to U.S. Bankruptcy Court approval. The company’s stock has shown significant volatility, with a dramatic 63.64% increase over the past week, though it remains down 92.33% over the last year. A hearing is scheduled for June 17, 2025, with expectations for the deal to conclude in the third quarter of 2025.
As part of the agreement, Regeneron commits to adhere to 23andMe’s privacy policies and all applicable laws, ensuring customer personal data is processed in accordance with current consents and security controls.
Mark Jensen, Chair of the Special Committee of the Board of Directors of 23andMe, expressed satisfaction with the transaction, emphasizing the importance of maintaining customer privacy and consent regarding genetic data. Regeneron has also committed to offering employment to all employees of the acquired business units.
Dr. George D. Yancopoulos, co-Founder and Chief Scientific Officer of Regeneron, highlighted the company’s history of safeguarding personal genetic data and its intention to uphold high standards for safety and integrity for 23andMe’s data and services.
The transaction is also subject to approval under the Hart-Scott-Rodino Act and other customary closing conditions. An independent Consumer Privacy Ombudsman will review the deal for potential impacts on consumer privacy and report findings by June 10, 2025.
23andMe secured up to $35 million in debtor-in-possession financing from JMB Capital Partners, with the auction’s outcome enabling access to additional liquidity during the sale process.
Legal counsel for 23andMe is provided by Paul, Weiss, Rifkind, Wharton & Garrison LLP and Carmody MacDonald P.C., with Alvarez & Marsal North America, LLC serving as restructuring advisor. Moelis & Company LLC acts as investment banker to the Special Committee of the Board.
This article is based on a press release statement from 23andMe, Inc.
In other recent news, 23andMe has filed for bankruptcy in the United States, citing a decline in demand for its ancestry testing kits and a data breach in 2023 that affected its reputation. Despite the bankruptcy filing, the company has assured customers that their data management and protection will remain unaffected. Meanwhile, New York Attorney General Letitia James and California Attorney General Rob Bonta have advised customers to delete their accounts to protect their genetic information. Additionally, 23andMe has introduced a new genetic report for its 23andMe+ Premium members, focusing on homocysteine levels, a factor in certain health conditions. This report includes an optional blood test, reflecting a trend towards personalized medicine. In another development, the Special Committee of 23andMe’s Board of Directors has rejected a buyout offer from CEO Anne Wojcicki, who proposed purchasing outstanding shares at a significantly reduced price compared to a previous offer. The company is currently exploring strategic alternatives to enhance shareholder value, which may include a potential sale. These recent developments highlight a period of significant change and challenge for 23andMe.
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