After an information breach, a board exodus and a rejected takeover bid, 23andMe’s co-founder and former is reclaiming management of 23andMe and its trove of genetic information
Anne Wojcicki is reclaiming 23andMe, the genetic testing firm she co-founded and as soon as led as CEO, by a brand new nonprofit, outbidding Regeneron Pharmaceuticals’ $256 million offer.
The corporate, which filed for bankruptcy in March, has entered right into a definitive settlement to promote practically all of its property to TTAM Analysis Institute, a California-based nonprofit public profit company led by Wojcicki, for $305 million.
The deal consists of 23andMe’s Private Genome Service, its analysis providers unit, and Lemonaid Well being, the corporate’s telehealth arm. A court docket listening to to approve the sale is scheduled for June 17, and the transaction is anticipated to shut within the coming weeks.
Regeneron has been named the backup bidder.
The settlement marks a dramatic twist in 23andMe’s recent saga. Final fall, all seven board members resigned over strategic variations after Wojcicki signaled curiosity in taking the corporate non-public. Although her preliminary acquisition proposal was rejected by a particular committee of the board, she stepped down as CEO in early 2024 to place herself as an unbiased bidder.
The corporate has confronted mounting setbacks in recent times, together with a 40% workforce discount and fallout from a high-profile 2023 information breach that uncovered data from practically 7 million customers and resulted in a $30 million settlement.
“We’re happy that the aggressive bidding course of has resulted in considerably extra worth to our stakeholders whereas enhancing important protections round buyer privateness, selection and consent with respect to their genetic information,” mentioned Mark Jensen, chair of the board and member of the particular committee of the board of administrators of 23andMe. “As 23andMe’s founder, Ms. Wojcicki is properly positioned to advance the corporate’s founding imaginative and prescient of serving to folks entry, perceive and achieve well being advantages by better understanding of the human genome. We’ll work to finish the transaction shortly in order that 23andMe can start its subsequent chapter as a nonprofit.”
As a part of the settlement, TTAM will broaden upon 23andMe’s present information privateness insurance policies. The group will proceed honoring buyer rights to delete accounts and genetic information and to decide out of analysis indefinitely. With 23andMe’s cooperation, all prospects shall be emailed a minimum of two enterprise days earlier than the sale closes with directions on privateness selections. Extra safeguards embody restrictions on information transfers within the occasion of one other sale or chapter, the creation of a Shopper Privateness Advisory Board inside 90 days, annual privateness reviews for Attorneys Common, two years of free Experian identification theft monitoring and continued help for tutorial analysis utilizing de-identified information.
“I’m thrilled that TTAM Analysis Institute will be capable to proceed the mission of 23andMe to assist folks entry, perceive and profit from the human genome,” Wojcicki mentioned. “We imagine it’s important that people are empowered to have selection and transparency with respect to their genetic information and have the chance to proceed to find out about their ancestry and well being dangers as they need. The 23andMe neighborhood of consented people will even have the chance to be a part of making novel genetic discoveries that enhance our information of DNA – the code of life – and the well being and wellness of everybody. I stay dedicated to the 23andMe neighborhood and driving ahead this mission. The way forward for healthcare belongs to all of us.”
