23andMe to be acquired by Regeneron
Despite having a popular consumer test, 23andMe struggled to turn a profit since going public. It went public via a SPAC, via Richard Branson's Virgin Group, in 2021, and raised $592 million in gross proceeds. The company was valued at $3.5 billion then.
But industry watchers believe the consumer testing model still holds value.
"Consumer-facing testing startups are stillraising, and young consumers show the most interest of any generation in at-home testing across fertility, microbiome, and hormone health," according to Rock Health, a venture funding firm, in an email to clients in March.
That has been evidenced by the recent FDA approval of an at-home cervical cancer screening kit.
Regeneron said in a statement Monday that it intends on ensuring the data is kept secure and individuals' privacy is paramount. The pharma company isn't new to genetic testing and data banks, as it has been doing so through clinical trials for years.
"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,” said Aris Baras, senior vice president and head of the Regeneron Genetics Center, in a statement.
“Since 2013, the Regeneron Genetics Center has sequenced the genetic information of nearly three million people in research studies, using this deidentified data to make meaningful discoveries at speed and scale," Baras said.
Yahoo Finance senior legal reporter Alexis Keenan contributed to this article.
Anjalee Khemlani is the senior health reporter at Yahoo Finance, covering all things pharma, insurance, care services, digital health, PBMs, and health policy and politics. That includes GLP-1s, of course. Follow Anjalee as AnjKhem on social media platforms X, LinkedIn, and Bluesky @AnjKhem.
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