Regeneron did not bid higher on the genetic testing company because of “its assessment of 23andMe’s remaining value,” according to a spokesperson for the pharma.
Just weeks after it pledged $256 million to acquire 23andMe, Regeneron Pharmaceuticals on Friday lost a bidding contest against the genetic testing company’s former CEO Anne Wojcicki, according to reporting from The Wall Street Journal.
Wojcicki, through her nonprofit the TTAM Research Institute, made a $305 million bid for 23andMe, which Regeneron declined to outdo. The pharma didn’t bid higher for the genetic testing company because of “its assessment of 23andMe’s remaining value,” a company spokesperson told the Journal. A court will still have to approve TTAM’s bid, which Wojcicki is bankrolling alongside other affiliates.
In its own press announcement on Friday, 23andMe called TTAM’s offer “the most value-maximizing transaction for the Company’s stakeholders.” As a result of this final round of bidding, TTAM is now designated as the winning bidder, while Regeneron has been bumped off to become the backup bidder. Once the court approves TTAM’s acquisition of 23andMe, Regeneron’s previous offer will be rendered null.
Regeneron swooped in to save the struggling 23andMe last month, bidding $256 million to acquire the genetic testing company in a bankruptcy auction. Aside from the testing platform, the transaction would have given the pharma 23andMe’s research arm, which has been focusing on exploring the genetic elements of bipolar disorder and dyslexia, as well as designing antibodies for solid tumors.
Friday’s final bid caps a difficult few years for 23andMe. In 2021, when the company went public, it was worth $3.5 billion. By the end of its fiscal year 2023, however, 23andMe was operating $312 million in the red. In March, the company filed for Chapter 11 bankruptcy, a move that was approved a few days later.
Throughout 23andMe’s very public meltdown—and the ensuing bidding process—user privacy has been a prevailing concern, with many customers asking how the company plans to protect the data that it’s collected over the years if it is sold. Approximately 15% of users have applied to have their genetic data deleted since 23andMe filed for bankruptcy, the company’s interim CEO Joe Selsavage said at a Senate Oversight Committee hearing last week.
In its statement on Friday, 23andMe said that Wojcicki’s TTAM has committed to complying with the company’s privacy policies. TTAM has also agreed to “binding commitments” that will add certain privacy safeguards to further protect 23andMe’s customers, the company added. These commitments include establishing a privacy advisory board, offering customers two years of free identity theft monitoring and taking steps to prevent data breaches.
Of note, TTAM has also promised that it would “not sell or transfer genetic data in connection with a subsequent bankruptcy or change of control,” barring certain scenarios, such as when the new potential owner is a “qualified domestic entity” that also agrees to abide by relevant privacy policies and laws.
