Health Law Daily Wrap Up, GENERAL HEALTH CARE NEWS—23andMe’s Buyer Won’t Use Customers’ Data Without Their Consent, Court Told, (Jun 17, 2025)

By Tom Leithauser

According to a notice filed in the case, 23andMe’s buyer won’t being using customer data until customers consent.

23andMe Holding Co.’s customers are being asked for their consent before the buyer of the bankrupt company’s assets begins using their data, according to a notice filed at the U.S. Bankruptcy Court for the Eastern District of Missouri.

“The Winning Bidder will abide by the Debtors’ privacy policies and applicable privacy laws, including by providing notice and/or obtaining the requisite consent, before any new use of your Personal Information,” customers are being told.

23andMe began sending the notice to all of its former and current customers last week, the notice indicates.

The decision to obtain consent from each former and current customer before any personal data is used by the reconstituted business follows a recommendation by a court-appointed consumer privacy ombudsman.

Other developments in the bankruptcy proceeding include the announcement of a new winning bidder for the company’s assets—the TTAM Research Institute (TTAM), a non-profit established by Anne Wojcicki, 23andMe’s co-founder and former chief executive officer.

The court decided to hold the reauction at TTAM’s request, and the previous winning bidder, Regeneron Pharmaceuticals, Inc., has become the back-up bidder.

TTAM describes itself as “a nonprofit medical research organization dedicated to helping scientists and non-scientists join together to unravel the mysteries of DNA—the code of life.”

TTAM will acquire “substantially all of the Company’s assets, including the Personal Genome Service (PGS) and Research Services business lines and the Lemonaid Health business, for a purchase price of $305 million,” 23andMe said in a news release.

Regeneron had offered only $256 million, and its bid excluded the acquisition of Lemonaid Health, 23andMe’s telehealth business.

“We are pleased that the competitive bidding process has resulted in significantly more value to our stakeholders while enhancing critical protections around customer privacy, choice and consent with respect to their genetic data,” said Mark Jensen, 23andMe’s chairman.

“As 23andMe’s founder, Ms. Wojcicki is well positioned to advance the Company’s founding vision of helping people access, understand and gain health benefits through greater understanding of the human genome. We will work to complete the transaction quickly so that 23andMe can begin its next chapter as a nonprofit,” Mr. Jensen said.

The bankruptcy court has scheduled a Wednesday hearing to consider approving the transaction.

TTAM has agreed to abide by 23andMe’s existing privacy policies and offer new data protections to its customers, according to a notice filed with the court on Friday.

Those new commitments include the establishment of a consumer privacy advisory board and the publication of annual privacy reports that will be made available to state attorneys general.

The privacy reports will disclose, among other things, any changes to the company’s privacy policy and “the number of customers who have reported issues deleting their accounts, including a high-level overview of the issues and the steps taken to address their requests,” the notice says.

“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,” Ms. Wojcicki said.

“We believe it is critical that individuals are empowered to have choice and transparency with respect to their genetic data and have the opportunity to continue to learn about their ancestry and health risks as they wish,” she said.

“The 23andMe community of consented individuals will also have the opportunity to be part of making novel genetic discoveries that improve our knowledge of DNA—the code of life—and the health and wellness of everyone,” Ms. Wojcicki added. “I remain committed to the 23andMe community and driving forward this mission.” —Tom Leithauser, [email protected]

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