Regeneron to acquire 23andMe for $256 million, with 23andMe stock rising 26%.

From Yahoo Finance: 2025-05-19 09:38:00

DNA testing company 23andMe is being acquired by Regeneron for $256 million. The deal excludes certain assets and is set to close on July 1. 23andMe’s stock rose over 26% in pre-market trading, while Regeneron’s stock increased by just over 1%.

Regeneron plans to acquire 23andMe’s Personal Genome Service and other assets for $256 million. The transaction is subject to bankruptcy court approval and is expected to close in the third quarter of 2025. 23andMe was founded in 2006 and had been struggling to create a successful business segment.

23andMe began shutting down clinical trials in November and filed for bankruptcy in March. Despite its popularity, the company has had difficulty turning a profit. Regeneron believes it can help 23andMe fulfill its mission and further its efforts in genetics research.

Regeneron intends to keep 23andMe’s data secure and prioritize individuals’ privacy. The company has experience in genetic testing and data banks through clinical trials. Regeneron aims to protect and utilize the data to improve human health.

23andMe’s struggles to turn a profit highlight challenges in the consumer testing industry. However, industry experts believe that consumer-facing testing startups still hold value, especially among young consumers. This trend is reflected in the recent FDA approval of at-home cervical cancer screening kits.



Read more at Yahoo Finance: 23andMe to be acquired by Regeneron