23andMe Reaches Agreement for Sale to Nonprofit Led by Co-Founder Anne Wojcicki
Beleaguered genetic testing company 23andMe announced Friday that it has reached an agreement to sell itself to a nonprofit led by the company’s co-founder and former CEO Anne Wojcicki.
Following a massive cyberattack in 2023 and a related lawsuit settlement, 23andMe filed for bankruptcy in March, with Wojcicki resigning in order to become an independent bidder for the company. However, pharmaceutical company Regeneron emerged as the company’s acquirer with a $256 million bid.
According to the Wall Street Journal, Wojcicki’s nonprofit TTAM Research Institute reopened the bidding process by making an unsolicited bid earlier this month, and Regeneron declined to beat TTAM’s $305 million offer.
In the announcement, TTAM Research Institute stated that customers will be notified of the acquisition at least two business days before the deal closes. The nonprofit also assured that it will continue to adhere to 23andMe’s privacy policies, allowing customers to delete their data and opt-out of research. Additionally, TTAM mentioned that it would establish a Consumer Privacy Advisory Board within 90 days of closing.
“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,” Wojcicki wrote on LinkedIn. “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.”
However, the acquisition still needs to be approved by the bankruptcy court and faces legal challenges. A group of 28 state attorneys general, led by New York’s Letitia James, filed a lawsuit objecting to the sale of the company’s assets, citing concerns about the auctioning of personal genetic information without consent.
Furthermore, a court-appointed privacy ombudsman raised doubts about whether 23andMe’s privacy policies allow for the sale of genetic data. The company’s interim CEO Joseph Selsavage also revealed that 15% of customers had requested to delete their data since the bankruptcy filing, indicating a potential loss of consumer trust.
