Health Law Daily Wrap Up, GENERAL HEALTH CARE NEWS—23andMe’s winning bidder offers data privacy commitments, (May 20, 2025)

By Tom Leithauser

The court recently ordered the appointment of a consumer privacy ombudsman to ensure that the data remains secure.

The winning bidder for 23andMe Holding Co.’s genetic testing business, Regeneron Pharmaceuticals, Inc., said it would adopt 23andMe’s policies related to data privacy and security and work with a consumer privacy ombudsman appointed by the court overseeing 23andMe’s Chapter 11 bankruptcy.

Regeneron was identified as the top bidder for the bulk of 23andMe’s assets. “Regeneron intends to acquire 23andMe’s Personal Genome Service (PGS), Total Health and Research Services business lines, together with its Biobank and associated assets, for $256 million and for 23andMe to continue all consumer genome services uninterrupted,” Regeneron said in a news release.

“Regeneron intends to ensure compliance with 23andMe’s consumer privacy policies and applicable laws with respect to the treatment of customer data,” the company announced.

“As the successful bidder, Regeneron is prepared to detail the intended use of customer data and the privacy programs and security controls in place for review by a court-appointed, independent Customer Privacy Ombudsman and other interested parties,” it said.

“As a world leader in human genetics, Regeneron Genetics Center is committed to and has a proven track record of safeguarding the genetic data of people across the globe, and, with their consent, using this data to pursue discoveries that benefit science and society,” said Aris Baras, Regeneron’s senior vice president.

“We assure 23andMe customers that we are committed to protecting the 23andMe dataset with our high standards of data privacy, security and ethical oversight and will advance its full potential to improve human health,” Mr. Baras added.

Policy-makers in the U.S. and abroad had expressed concerns about the genetic data held by 23andMe being acquired by an adversarial foreign government or an organization with a spotty track record of protecting data. The court recently ordered the appointment of a consumer privacy ombudsman to ensure that the data remains secure.

In a purchase agreement filed with the U.S. Bankruptcy Court for the Eastern District of Missouri by 23andMe’s legal team, Regeneron promises to “comply with [23andMe’s] ... privacy policies and statements, consent documents and all applicable Privacy Laws.”

It said it intended to operate 23andMe as a “wholly owned direct or indirect subsidiary of Regeneron Pharmaceuticals, Inc. and continue operations as a personal genomics service.” But it won’t be buying 23andMe’s telehealth business, Lemonaid Health, it said.

The transaction is subject to bankruptcy court and regulatory approvals, it noted.—Tom Leithauser, [email protected]

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