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Regeneron Pharmaceuticals will purchase DNA testing company 23andMe for $256 million following its bankruptcy filing, both companies announced Monday.

The move raises major privacy concerns, which Regeneron says it is ready to address.

Once valued at over $6 billion, 23andMe filed for bankruptcy in March 2025 due to falling demand for DNA test kits and a serious data breach in 2023 that exposed the personal information of nearly 7 million users.

The company has collected genetic data from around 15 million people since launching its popular at-home test kits.

Regeneron, a biotech company known for using genetics in drug research, said it would buy nearly all of 23andMe's assets except for its telehealth business, Lemonaid Health, which will shut down, CNN said.

The deal is expected to close by the third quarter of 2025, pending court and regulatory approval.

"We believe we can help 23andMe deliver and build upon its mission," said Dr. George D. Yancopoulos, Regeneron's co-founder and chief scientist. "This deal will also support Regeneron's ongoing efforts to discover new treatments for serious diseases."

Regeneron Vows Data Privacy After 23andMe Purchase

Privacy has been a major concern throughout the bankruptcy process. Lawmakers and consumer advocates worried that millions of people's genetic data could be sold or misused.

In response, a court-appointed privacy overseer will monitor how the data is handled during and after the sale.

Regeneron promised it would not use personal information for research without user permission and said it would follow all existing privacy policies and laws.

"We will not use any personal data in a manner inconsistent with the purposes for which it was shared with 23andMe," the company said in a statement.

According to 23andMe, about 84% of its users agreed to let their genetic information be used for research. The company added that Regeneron has offered jobs to all current employees whose units are part of the deal, TheNewYorkTimes said.

23andMe has faced tough years since going public in 2021. After early success, it saw a drop in kit sales and was hit hard by the 2023 hacking incident, which mainly targeted Jewish and Chinese users. A class-action lawsuit followed, ending in a $30 million settlement.

California's attorney general, Rob Bonta, issued a warning earlier this year, reminding residents they have the right to ask for their DNA data to be deleted. His office continues to watch the case closely.