US Pharmaceutical Company Acquires 23andMe for $256 Million Amid Data Privacy Concerns

A significant acquisition has come to light as Regeneron Pharmaceuticals, a major player in the biotech sector, has placed the highest bid to purchase 23andMe, the well-known genetic analysis firm, for a total of $256 million. This move comes as 23andMe faces insolvency following a major data breach that exposed sensitive genetic information of millions of users.

Regeneron has announced its commitment to uphold all existing data privacy protections associated with 23andMe's services, promising to maintain the genetic analysis offerings for consumers. The acquisition is yet to receive approval from the relevant bankruptcy court and competition authorities.

The backdrop of this acquisition is troubling; 23andMe's financial troubles were precipitated by a data leak revealed in late 2023. The breach involved hackers gaining access to user account information through credential stuffing attacks, where stolen credentials from other platforms were used to log into 23andMe accounts. This breach resulted in the personal genetic data of approximately seven million users being listed for sale on the dark web, prompting a series of legal challenges that culminated in a settlement.

Following the breach, 23andMe's stock value plummeted, leading the company to seek bankruptcy protection earlier in March. This prompted a surge in requests from users wanting to delete their data, which overwhelmed the company's systems. An analysis by 404 Media has highlighted that the acquisition price set by Regeneron implies a cost of around $17 per genetic dataset, a stark contrast to a previous agreement with a pharmaceutical company that valued access to anonymized DNA information at $60 per dataset just seven years prior.

As the acquisition process unfolds, the future of 23andMe hangs in the balance, with stakeholders keenly observing how Regeneron will navigate the complex landscape of genetic data research while ensuring consumer privacy and trust in the wake of previous breaches.