Non-profit run by 23andMe co-founder gets court approval to buy the genetic testing company
CBC
Anne Wojcicki's bid to buy 23andMe, the genetic testing company she co-founded nearly 20 years ago, has received the court green light.
That means Wojcicki's non-profit TTAM Research Institute will purchase "substantially all" of San Francisco-based 23andMe's assets for $305 million US (about $416 million Cdn). The transaction — which arrives more than three months after 23andMe filed for Chapter 11 bankruptcy — is set to officially close 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 said in a statement Monday. She later added that, "the future of health care belongs to all of us."
The sale, which was approved by U.S. Bankruptcy Judge Brian C. Walsh on Friday, marks the end of a months-long bidding war between TTAM and Regeneron Pharmaceuticals — a biotech company that had previously agreed to buy most of 23andMe's assets for $256 million US in May. But Wojcicki's non-profit later topped that offer, winning the final round of bidding held last month.
Under the deal, TTAM will acquire 23andMe's signature "Personal Genome Service" provided through the company's saliva-based DNA testing kits — as well as research operations and its Lemonaid Health subsidiary, a telehealth services provider that 23andMe previously planned to wind down.
Wojcicki had worked to take 23andMe private for some time. With the company struggling to find a profitable business model since going public in 2021, she's maintained that it would operate better outside market pressures. But that endeavour proved to be tumultuous — notably in September of last year, when all of 23andMe's independent directors resigned from its board citing a "clear" difference of opinion with Wojcicki on the company's future following drawn-out negotiations.
Leading up to 23andMe's March bankruptcy filing, subsequent efforts from Wojcicki to acquire the company were unsuccessful. And when 23andMe filed for Chapter 11 in late March, Wojcicki resigned as CEO — noting at the time that she was stepping down to be "in the best position" as an independent bidder.
Now that Wojcicki's non-profit will acquire 23andMe, it's unclear whether the co-founder will step back into the CEO seat. But despite stepping down from the top post months ago, Wojcicki has remained on the company's board throughout the bankruptcy process.
Beyond financial strains leading up to 23andMe's bankruptcy, privacy concerns related to customers' genetic information also emerged — dating back to even before the bankruptcy process, notably with a 2023 data breach. But concern what new ownership could mean for 23andMe users' personal data has bubbled up in recent months.
The genetic testing business had about 13 million customers at the time of its sale hearing, court documents note.
In June, 27 states and the District of Columbia filed a lawsuit seeking to block the sale of personal genetic data by 23andMe without customer consent. And in a memorandum opinion outlining his approval 23andMe's sale to TTAM on Friday, Walsh acknowledged these states' objections to the acquisition — but that noted many had since been resolved. Still, California, Kentucky, Tennessee, Texas, and Utah "remain actively opposed to the sale."
In a statement to Politico on Monday, California Attorney General Rob Bonta's office maintained that 23andMe's sale "does not comply" with genetic privacy law in the state — and said it was "disappointed" with the court's approval, adding that it was evaluating next steps.
In a statement, California Attorney General Rob Bonta's office maintained that 23andMe's sale "does not comply" with genetic privacy law in the state — and said it was "disappointed" with the court's approval.
"We are evaluating next steps and remain committed to protecting the data of Californians," Bonta's office added.
