Anne Wojcicki, co-founder of 23andMe, has successfully secured court approval to repurchase the genetic testing company she helped establish nearly two decades ago. The transaction, valued at $305 million, will see Wojcicki’s nonprofit, TTAM Research Institute, acquire “substantially all” of 23andMe’s assets. This development follows the company’s Chapter 11 bankruptcy filing over three months ago and is expected to finalize in the coming weeks.
“I am thrilled that TTAM will be able to build on the mission of 23andMe to help people access, understand, and benefit from the human genome,” Wojcicki stated on Monday. She emphasized that “the future of health care belongs to all of us,” underscoring her commitment to the company’s original vision.
The Bidding War and Bankruptcy
The court’s decision concludes a protracted bidding war between TTAM and Regeneron Pharmaceuticals, a biotech firm that initially agreed to purchase most of 23andMe’s assets for $256 million. Wojcicki’s nonprofit ultimately outbid Regeneron, securing the deal in a final bidding round last month. U.S. Bankruptcy Judge Brian C. Walsh approved the sale on Friday.
Under the agreement, TTAM will take over 23andMe’s signature “Personal Genome Service,” which utilizes saliva-based DNA testing kits, as well as its research operations and Lemonaid Health subsidiary, a telehealth service provider previously slated for closure.
Wojcicki had long sought to take 23andMe private, arguing that it would function more effectively away from the pressures of the public market. The company has struggled to establish a profitable business model since its public listing in 2021. The situation reached a critical point in September of last year when all independent directors resigned from 23andMe’s board, citing a “clear” divergence in vision with Wojcicki regarding the company’s future.
Privacy Concerns and Legal Challenges
Beyond financial difficulties, 23andMe has faced significant privacy concerns, particularly regarding the handling of customers’ genetic data. These issues were exacerbated by a 2023 data breach, raising questions about the implications of new ownership for user privacy. At the time of the sale hearing, the company had approximately 13 million customers, according to court documents.
In June, 27 states and the District of Columbia filed a lawsuit to prevent the sale of personal genetic data by 23andMe without customer consent. Despite Judge Walsh acknowledging these objections in his memorandum opinion approving the sale to TTAM, he noted that many concerns had been addressed. However, California, Kentucky, Tennessee, Texas, and Utah remain opposed to the transaction.
California Attorney General Rob Bonta’s office expressed disappointment with the court’s decision, stating that the sale “does not comply” with the state’s genetic privacy laws. Bonta’s office is currently evaluating its next steps.
Commitment to Privacy and Future Prospects
In response to privacy concerns, 23andMe has confirmed that TTAM is committed to adhering to the company’s existing privacy policies and applicable laws. This includes allowing users to delete their data and opt out of research. The company assured that all customers would receive an email at least two business days before the acquisition closes, detailing TTAM’s privacy commitments and providing instructions on data deletion or opting out of research.
To further assuage customer concerns, TTAM will offer two years of free Experian identity theft monitoring. Wojcicki reiterated her commitment to privacy, stating, “Core to my beliefs is that individuals should be 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.”
The acquisition marks a new chapter for 23andMe as it navigates the challenges of privacy and profitability. As Wojcicki reclaims control, the industry will be watching closely to see how the company adapts and evolves under her leadership.
