Regeneron Acquires 23andMe for $256 Million, Including Data of 15 Million Users

By Netvora Tech News

Regeneron Pharmaceuticals, an American biotech company, has acquired the failed DNA testing firm 23andMe, including the personal and genetic data of 15 million users, for $256 million. Regeneron plans to use the user data to discover new medicines. Through 23andMe and similar companies, users can test their DNA to determine their ancestry and connect with distant relatives on the platform. Additionally, users can test for health-related traits. 23andMe has millions of users worldwide, including in the Netherlands. In 2023, attackers successfully breached the accounts of 24,000 users via a credential stuffing attack. After gaining access to the accounts, they stole the ancestry data of 6.9 million users who had used the DNA Relatives feature. This feature allows users to find and connect with distant relatives on the platform. The feature is optional, but many users had enabled it to find relatives through 23andMe. The company had earlier this year filed for bankruptcy in the United States, causing concern among users that their DNA data would become part of the bankruptcy estate, according to the Federal Trade Commission (FTC). The data includes not only DNA data and DNA material but also health data, genealogical and ancestry information, personal contact data, payment and billing data, and messages exchanged between users on the platform. Regeneron says it prioritizes the privacy, security, and ethical use of user data. The company also plans to follow 23andMe's privacy policy and relevant laws governing the use of customer data. Additionally, 23andMe will continue to offer DNA testing as it currently does. The acquisition is expected to be completed in the third quarter of this year.

Data Security Concerns

Regeneron's acquisition of 23andMe raises concerns about data security and privacy. With the company's history of data breaches and the sensitive nature of the data, users may worry about the security of their information. Regeneron's commitment to prioritizing privacy, security, and ethical use of data is reassuring, but the company will need to take concrete steps to address these concerns.

Implications for Users

The acquisition could have significant implications for 23andMe users. Regeneron's plans to use the user data to discover new medicines could lead to breakthroughs in medical research, but users may also be concerned about the potential use of their data for other purposes. The company's commitment to ethical use of data and its plans to follow 23andMe's privacy policy are reassuring, but users will need to carefully review the new terms and conditions to understand how their data will be used.

What's Next

Regeneron's acquisition of 23andMe is expected to be completed in the third quarter of this year. In the meantime, the company will need to address user concerns about data security and privacy. Regeneron will also need to integrate 23andMe's operations and technology into its own, which could take some time. As the acquisition unfolds, users will need to stay informed about any changes to the platform and the company's data use policies.