A nonprofit led by Anne Wojcicki, the co-founder and former chief executive of 23andMe, won a bid to acquire the genetic testing company following its bankruptcy filing in March.
Wojcicki’s California-based nonprofit, TTAM Research Institute, will purchase 23andMe for $305 million, according to a news release on Friday.
It’s the final twist in the bidding war between TTAM and Regeneron Pharmaceuticals, which announced on May 19 that it would buy most of 23andMe’s assets for $256 million. The Wall Street Journal reported that New York-based Regeneron cited “its assessment of 23andMe’s remaining value” for not submitting a higher bid.
23andMe and Regeneron did not respond to CNN’s request for comment.
Wojcicki stepped down from 23andMe on March 24, when the company filed for Chapter 11 bankruptcy. 23andMe’s struggles drew attention in September 2024 when all seven of the company’s independent directors resigned en masse, citing frustration with Wojcicki’s “strategic direction” and efforts to take the company private. In November 2024, 23andMe cut about 40% of its workforce, or roughly 200 employees, and discontinued developments of its therapies in a restructuring effort.
23andMe, which at one point was valued at $6 billion, has collected genetic data from 15 million customers through at-home DNA testing kits that used saliva samples.
The testing kits offered “personalized genetic insights” that could flag potential health risks. But 23andMe struggled to convert one-time buyers into subscribers.
The company’s bankruptcy filing sparked concern about data privacy, as customers worried their genetic information would be sold to a third party. Twenty-seven states and the District of Columbia filed a lawsuit on Monday against 23andMe to block the sale of genetic data without customer consent.
Interested companies could use 23andMe’s data to personalize their products or advertising. Genetics can be linked to food preferences, for instance. Genetic data could also be used when developing personalized medicine, Gideon Nave, an associate professor of marketing at the University of Pennsylvania’s Wharton School, told CNN in March.
There aren’t many restrictions in place to prevent genetic discrimination, although the Genetic Information Nondiscrimination Act prevents gene information from being used for discrimination in health insurance coverage or employment.
According to the news release, TTAM said that it will comply with 23andMe’s privacy policies and honor existing policies regarding customer data rights, such as deleting accounts and opting out of research.
“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. 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,” Wojcicki said in a news release.
TTAM, an acronym for the first letters of 23andMe, will acquire “substantially all” of 23andMe’s assets, including its personal genome service, research services and Lemonaid Health, a telehealth program acquired by the company in 2021.
The deal still needs to be approved by the US Bankruptcy Court for the Eastern District of Missouri. A hearing is scheduled for June 17, according to the release.
CNN’s Lisa Eadicicco contributed to this report.
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