Court Approves $305M Sale of 23andMe to Nonprofit Led by Former CEO Anne Wojcicki
Court Approves $305M Sale of 23andMe to Nonprofit Led by Former CEO Anne Wojcicki
A U.S. bankruptcy court has this week approved the $305 million sale of consumer genetics testing giant 23andMe to a nonprofit organization led by its co-founder and former CEO, Anne Wojcicki. The landmark decision, which received approval on Monday, paves the way for TTAM Research Institute, a California-based nonprofit, to acquire the company, including its telemedicine service Lemonaid Health.
The sale comes after 23andMe filed for Chapter 11 bankruptcy in March, following a series of setbacks including a 2023 data breach settlement and board resignations. The bankruptcy sparked significant public concern regarding the security of genetic data belonging to 23andMe’s approximately 15 million customers.
TTAM Research Institute has committed to maintaining 23andMe’s existing customer privacy policies and implementing additional data security measures. This pledge addresses concerns raised by 27 states and the District of Columbia, which last month filed a lawsuit to prevent the sale of genetic information without customer consent. The approved bid by TTAM replaces an earlier $256 million offer from Regeneron Pharmaceuticals.
Anne Wojcicki, who resigned as CEO in March, expressed her excitement, stating that TTAM aims to operate for “the public good” and advance human health globally by championing DNA knowledge. She emphasized the importance of individual choice and transparency regarding genetic data. The transaction is anticipated to finalize in the coming weeks, with customers set to receive email notifications prior to the acquisition’s closure.
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