“$256 Million Deal Sparks Concerns Over Pharma Access to Consumer DNA”

n a development raising new questions about the intersection of medicine, data privacy, and corporate power, Regeneron Pharmaceuticals, Inc. (NASDAQ: REGN) announced it has acquired key assets of 23andMe Holding Co. following a bankruptcy auction. The deal, valued at $256 million, includes 23andMe’s flagship Personal Genome Service®, its research and health data divisions, and its extensive Biobank of consumer genetic information.

While the companies describe the move as an opportunity to “advance personalized health,” critics warn that the acquisition gives a major pharmaceutical entity unprecedented access to one of the world’s largest privately held genetic databases—originally compiled under the pretense of consumer curiosity and wellness.

The transaction, expected to close in the third quarter of 2025, is pending approval by the bankruptcy court and federal regulators. If finalized, 23andMe will become a wholly owned subsidiary of Regeneron. The Lemonaid Health telemedicine unit is not included in the purchase.

Regeneron emphasized its commitment to continuing 23andMe’s consumer services uninterrupted and stated it would comply with existing privacy policies and regulations. However, the company’s framing of the acquisition as a strategic boost to its drug discovery pipeline raises flags among privacy advocates and ethicists.

“Regeneron was one of the first biotech companies to bet its future on the power of DNA,” said Dr. George Yancopoulos, Regeneron’s President and Chief Scientific Officer. “We believe we can help 23andMe build upon its mission while furthering our own goals to treat and prevent illness.”

To some, that statement underscores the problem: consumer DNA voluntarily submitted to learn about ancestry or health traits may now serve as raw material for pharmaceutical research—without any additional consent or compensation to those who provided the data.

Aris Baras, head of the Regeneron Genetics Center®, stated the company has sequenced nearly three million genomes through research collaborations and intends to apply similar techniques to the 23andMe data set. “We assure 23andMe customers that we are committed to protecting the dataset,” Baras said. “We will advance its full potential to improve human health.”

But critics argue that this type of data repurposing further blurs the line between research and commerce. Consumer advocates are especially concerned about how data originally gathered for educational purposes may now be monetized in ways users never anticipated.

“There’s a fundamental difference between participating in a study with a university and handing over your DNA to a private company that ends up in the hands of Big Pharma,” said one privacy expert. “This raises serious questions about consent, ownership, and the commodification of the human genome.”

The deal will be reviewed by a court-appointed Customer Privacy Ombudsman, though it remains unclear whether existing users will have any practical mechanism to opt out of new uses of their data.

Joe Selsavage, Interim CEO of 23andMe, framed the sale as a positive development: “With Regeneron’s support and deep experience in genetic research, we believe our mission will continue.”

Still, many observers worry this is the latest example of sensitive personal data—collected under consumer-friendly branding—quietly migrating into the hands of powerful pharmaceutical entities. And with 23andMe’s brand now folded under the umbrella of a drug company, some are asking whether personal genomics can ever again be separated from corporate interests.

Source article: https://newsroom.regeneron.com/news-releases/news-release-details/regeneron-enters-asset-purchase-agreement-acquire-23andmer-256