Regeneron to acquire 23andMe’s core assets for $256m amid court-supervised bankruptcy sale

Why Is Regeneron Buying 23andMe Amid Bankruptcy?

Regeneron Pharmaceuticals, Inc. has signed a definitive agreement to acquire the core business assets of 23andMe Holding Co. for $256 million, in a transaction emerging from 23andMe’s ongoing Chapter 11 bankruptcy process. Announced on May 19, 2025, this court-supervised asset sale positions Regeneron to absorb one of the most well-known names in consumer genetics as it further integrates genetic insights into pharmaceutical development.

The acquisition, pending approval from the U.S. Bankruptcy Court for the Eastern District of Missouri, follows the conclusion of an auction process completed on May 16, 2025. A court hearing to approve the deal is scheduled for June 17, and the transaction is expected to close during the third quarter of 2025.

What Assets Will Regeneron Acquire From 23andMe?

The deal includes nearly all of 23andMe’s key operating segments—namely, its Personal Genome Service (PGS), Total Health platform, and Research Services unit. The Lemonaid Health virtual care business is excluded from the sale and will be wound down separately in an orderly manner. With this transaction, Regeneron is effectively purchasing the consumer DNA testing backbone, research tools, and health insight services that have powered 23andMe’s mission since its founding.

In acquiring these capabilities, Regeneron aims to bring valuable consumer genomic data in-house to support its existing pharmaceutical research engine, already powered by the Regeneron Genetics Center (RGC).

What Does This Mean for Data Privacy and Genetic Consent?

Recognizing the high sensitivity of consumer genetic data, Regeneron has publicly committed to honouring 23andMe’s existing privacy policies, user consents, and data-use restrictions. All personal genetic information will continue to be processed in accordance with the terms under which it was originally collected, and no changes are planned to 23andMe’s privacy statement.

Additionally, a Consumer Privacy Ombudsman (CPO) has been appointed by the court to evaluate the impact of the sale on data privacy and will submit a report by June 10. This safeguard ensures consumer protection remains a central focus in a transaction that involves personal health data on millions of individuals.

What Strategic Goals Does Regeneron Hope to Achieve?

The acquisition underscores Regeneron’s ambition to remain at the forefront of genetics-driven drug discovery. According to co-founder and Chief Scientific Officer George D. Yancopoulos, the move is designed to integrate 23andMe’s consumer insights with Regeneron’s own advanced research platforms, such as VelociSuite® and RGC-powered therapeutic discovery tools.

Historically, Regeneron has achieved success with treatments ranging from blindness prevention to oncology and immunology solutions—all areas that could benefit further from richer genetic datasets. By internalizing a ready-to-integrate consumer genetic platform, Regeneron is positioning itself to accelerate biomarker discovery, patient stratification, and trial design at scale.

How Has the Market Reacted to the Acquisition?

Investor response to the announcement has been notably positive for Regeneron. On May 16, 2025—the last full trading day before the news broke—Regeneron’s stock closed at $594.32 on NASDAQ. In early post-announcement trading on May 19, the stock edged higher, reflecting cautious optimism among institutional and retail investors alike.

Citigroup analysts recently upgraded Regeneron’s stock to a “Buy” rating, raising the price target to $700. Their rationale cited the company’s strengthening fundamentals, the promise of experimental therapies such as fianlimab and itepekimab, and the value-enhancing potential of this acquisition.

Over the past 24 months, institutions have acquired more than 27.8 million Regeneron shares, representing nearly $22.2 billion in transaction value. Major institutional stakeholders include Vanguard Group, BlackRock, and FMR LLC, all of which have maintained or increased exposure in recent quarters. This solid institutional backing reinforces confidence in the company’s long-term strategy.

What’s the Investment Outlook for Regeneron?

From an investment standpoint, Regeneron presents a compelling “Buy” opportunity, particularly for those seeking growth in genetics-integrated drug development. The company’s historically strong pipeline, scientific leadership, and its ability to translate genetic insights into approved medicines provide a solid foundation for continued outperformance in the biotech sector.

The 23andMe acquisition is expected to be earnings-accretive over the medium term, particularly as the company integrates new data into its pipeline strategy. Investors may view this transaction as a logical step toward enhancing Regeneron’s proprietary dataset moat, supporting both organic R&D and potential licensing opportunities.

What’s the Future for 23andMe After Bankruptcy?

For 23andMe, this sale represents the culmination of a difficult restructuring process. The company filed for Chapter 11 bankruptcy protection earlier in 2025 after facing severe liquidity constraints and a declining valuation. With the sale now agreed upon, the company will gain access to the second tranche of its $35 million DIP financing package from JMB Capital Partners, ensuring business continuity through the transition.

However, from an equity investor standpoint, the outlook remains bleak. 23andMe’s stock (now trading OTC under the ticker MEHCQ) surged more than 26% in pre-market activity following the announcement. Yet analysts warn that public shareholders may receive minimal, if any, recovery given the transaction structure under Section 363 of the Bankruptcy Code.

Institutional sentiment has soured markedly on 23andMe. In the most recent quarter, institutional holdings declined by over 93%, according to Fintel. With such severe dilution and no remaining core assets post-sale, the stock is now widely considered a high-risk, speculative instrument with extremely limited upside.

What’s the Broader Impact on the Consumer Genomics Market?

This acquisition may mark the end of the era of standalone consumer genetics companies. Once heralded as disruptors, firms like 23andMe have faced rising regulatory burdens, increased consumer privacy concerns, and slowing revenue growth. The ability to monetise genetic data while maintaining user trust has proven more difficult than anticipated.

By contrast, pharmaceutical companies with established research pipelines and clinical infrastructure may be better positioned to leverage such data responsibly and effectively. Regeneron’s move may prompt other large-cap biotechs or pharma conglomerates to pursue similar acquisitions, creating a new model for integrating consumer-facing platforms into back-end drug development.

What Comes Next?

Looking ahead, the next milestones in the transaction include final court approval and antitrust clearance under the Hart-Scott-Rodino Act. Assuming regulatory and judicial approvals are obtained by mid-June, Regeneron expects to close the deal in Q3 2025.

Once complete, Regeneron will likely begin the process of harmonizing 23andMe’s consumer platform with its research pipeline, with an eye toward future drug targets, polygenic risk tools, and personalized therapeutics. Investors and healthcare analysts alike will be watching closely for product pipeline updates, R&D output from the enhanced data pool, and strategic partnerships arising from this integration.