Anne Wojcicki’s bid to acquire 23andMe, the genetic testing company she co-founded nearly two decades ago, has officially received court approval.
Wojcicki’s nonprofit organization, TTAM Research Institute, will purchase substantially all of 23andMe’s assets for $305 million.
This transaction comes three months after 23andMe filed for Chapter 11 bankruptcy and is expected to 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 stated in a statement following the approval.
She further added, “The future of health care belongs to all of us.”
The court’s approval, given by U.S. Bankruptcy Judge Brian C. Walsh, marks the conclusion of an intense bidding war between Wojcicki’s TTAM and Regeneron Pharmaceuticals.
The latter company had previously planned to acquire most of 23andMe’s assets for $256 million in May, but TTAM raised the stakes and ultimately prevailed in the final bidding round last month.
As part of the deal, TTAM will take over 23andMe’s signature “Personal Genome Service” which includes the company’s saliva-based DNA testing kits, along with its research operations and the Lemonaid Health subsidiary.
The telehealth service that 23andMe had intended to wind down will now continue under TTAM’s stewardship.
Wojcicki had been working to take 23andMe private for some time, arguing that the company could perform better away from the pressures of public markets.
However, her efforts faced considerable challenges, particularly highlighted by a significant event in September of last year when all of 23andMe’s independent directors resigned.
They cited a “clear” difference of opinion with Wojcicki regarding the company’s direction after protracted negotiations.
Before the bankruptcy filing in March, Wojcicki’s attempts to acquire the company had not been successful.
When 23andMe filed for Chapter 11 at the end of March, Wojcicki resigned from her position as CEO, stating her exit was to position herself better as an independent bidder.
Now, with TTAM scheduled to acquire 23andMe, it remains uncertain whether Wojcicki will return as CEO.
Despite stepping down from her executive role months ago, she has continued to serve on the company’s board throughout the bankruptcy proceedings.
Alongside financial difficulties leading up to the bankruptcy, privacy concerns surrounding customer genetic data have surfaced repeatedly.
These issues, dating back prior to the bankruptcy, became more pronounced following a significant data breach in 2023.
Recently, concerns regarding what the new ownership might mean for user privacy have intensified, particularly since the company had approximately 13 million customers at the time of the sale hearing.
In June, 27 states and the District of Columbia initiated a lawsuit aimed at blocking the sale of personal genetic data by 23andMe without obtaining customer consent.
In a memorandum released alongside his approval of the sale, Judge Walsh recognized the objections raised by several states, stating that many of those issues had been largely resolved.
However, California, Kentucky, Tennessee, Texas, and Utah have remained opposed to the sale.
California Attorney General Rob Bonta’s office issued a statement on Monday claiming that 23andMe’s sale does not comply with the state’s genetic privacy law, expressing disappointment with the court’s ruling and indicating it was evaluating its legal options.
Upon announcing the intended sale to TTAM, 23andMe assured that TTAM had committed to adhering to the company’s privacy policies and relevant laws.
TTAM will respect existing policies concerning consumer data, allowing users to delete their data and opt-out of research participation, as stated by the company.
All customers will be notified via email at least two business days before the acquisition takes effect, including details on TTAM’s privacy commitments and guidance for data management options.
Additionally, 23andMe has pledged to provide customers with two years of Experian identity theft monitoring free of charge.
The company reiterated its dedication to upholding privacy policies on Monday.
Wojcicki concluded with her belief that individuals should have the empowerment of choice and transparency regarding their genetic data, emphasizing the opportunity for users to learn about their ancestry and health risks as they see fit.
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