A nonprofit organization controlled by Anne Wojcicki, the former chief executive of 23andMe, has successfully won the bidding process to purchase the bankrupt genetic testing company. If the sale receives court approval, it would mark Wojcicki's return to the helm of the company she co-founded, which she had previously attempted to take private. This development is significant for the future of 23andMe, a pioneer in the field of at-home DNA testing.
23andMe, which gained fame for its innovative at-home DNA test kits, declared Chapter 11 bankruptcy in March. At its peak, the company was valued at an impressive $6 billion. The recent bankruptcy has raised important questions regarding the privacy standards associated with genetic data, an area of growing concern for consumers and experts alike. Genetic information is considered uniquely sensitive, immutable, and irreplaceable if compromised.
With over 11 million customers having submitted DNA samples, 23andMe controls a vast repository of genetic information. As part of the acquisition, Wojcicki's nonprofit, the TTAM Research Institute, has committed to adhering to the existing privacy policy of 23andMe while also implementing enhanced consumer protections. According to a statement from 23andMe, this commitment aims to ensure that customer data remains secure and used responsibly.
In a statement regarding the acquisition, Wojcicki expressed her enthusiasm: “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. We believe it is critical that individuals are empowered to have choice and transparency with respect to their genetic data.” This vision aligns with the growing demand for transparency in how personal data is handled, especially in the realm of genetics.
Prior to the acquisition by TTAM Research Institute, Regeneron Pharmaceuticals, a New York-based drug maker, was in line to purchase 23andMe. However, the bankruptcy judge reopened the bidding process, allowing TTAM to present a bid of $305 million for the company and its assets. The final round of bidding concluded when Regeneron opted not to submit a higher offer, paving the way for TTAM to finalize the acquisition.
Despite the successful bid, 23andMe faces legal hurdles as dozens of states have filed a joint lawsuit aimed at blocking the company's sale of customers' genetic data without explicit consent. Oregon Attorney General Dan Rayfield highlighted the gravity of the situation, stating, “This isn’t just data — it’s your DNA. People did not submit their personal data to 23andMe thinking their genetic blueprint would later be sold off to the highest bidder.” This lawsuit underscores the critical need for stringent regulations to protect consumers' genetic information.
