23andMe, a pioneering genetic testing firm, has embarked on a new journey after being acquired by Regeneron Pharmaceuticals for $256m. The deal marks a significant shift in the company’s future, as it seeks to harness its vast customer data for drug development while prioritizing responsible data protection.
23andMe, a once-celebrated company in the genetic testing industry, is facing financial struggles that have left its future uncertain. The company has been acquired by Regeneron Pharmaceuticals for $256m (£192m), marking a significant turn of events for the struggling firm.
As part of the deal, ‘complying with 23andMe’s privacy policies’ was one of Regeneron’s commitments, and the company has security controls in place to protect user data. This commitment is a crucial aspect of the acquisition, as it ensures that customer genetic data will be handled responsibly.
Customer data protection refers to the practices and policies implemented by organizations to safeguard sensitive customer information.
This includes personal identifiable data, financial information, and other sensitive details.
According to a study, 64% of consumers consider 'data privacy' as a top concern when choosing a brand.
Organizations must adhere to regulations such as GDPR and CCPA, ensuring transparency in data collection and usage.
Regular security audits, encryption, and access controls are also essential measures.
23andMe’s struggles are not new. The company has faced several high-profile data breaches in recent years, including a significant incident in 2023 where hackers gained access to family trees, ‘birth years’ , and geographic locations using customers’ old passwords. While the stolen data did not include DNA records, these breaches have raised concerns about the firm’s ability to protect sensitive customer information.
Despite its struggles, 23andMe will continue to operate as a wholly-owned unit of Regeneron, which has expressed interest in utilizing the company’s data for drug development. This new partnership aims to maximize the value of the business while maintaining critical protections around customer privacy and consent.
23andMe was co-founded in 2006 by ‘Anne Wojcicki’ and served as CEO until stepping down in March. The company received high-profile endorsements from celebrities, but ultimately struggled amid weak demand for its testing kits and failed to redefine its business model. In recent years, the company has undergone significant changes, including a data breach and a lawsuit over its handling of customer privacy.
Anne Wojcicki is an American entrepreneur and investor, best known as the co-founder and CEO of 23andMe, a genetic testing company.
She has a degree in biology from Yale University and a master's degree in economics from the University of California, Berkeley.
Wojcicki's work at 23andMe has focused on making genetic information accessible to consumers.
The company has faced regulatory challenges, but under Wojcicki's leadership, it has grown into one of the largest genetic testing companies worldwide.
The acquisition by Regeneron marks a new chapter in 23andMe’s history. While the company’s struggles are well-documented, this deal offers a glimmer of hope for its future success. As Regeneron moves forward with the integration of 23andMe’s assets, it will be crucial to prioritize data protection and customer privacy, ensuring that customers’ sensitive information is handled responsibly.
Regeneron is a biopharmaceutical company that develops and commercializes innovative medicines.
Founded in 1988 by George D. Yancopoulos, it has grown to become one of the world's leading biotechs.
Regeneron's products include Eylea for eye diseases, Dupixent for skin conditions, and Libtayo for cancer treatment.
The company is known for its antibody-based therapies and collaborations with academic institutions and pharmaceutical companies.
