In This Article:
Regeneron Pharmaceutical (REGN) is buying 23andMe’s (MEHCQ) genetics business out of bankruptcy for $256 million, aiming to boost its drug discovery capabilities using DNA data.
Yahoo Finance Senior Reporter Anjalee Khemlani explains how the deal ties into Regeneron’s broader strategy and addresses privacy concerns.
To watch more expert insights and analysis on the latest market action, check out more Market Domination here.
23 uh DNA test testing company 23 and me is being purchased out of bankruptcy. Drug maker Regeneron to acquire the biotech company for $256 million. Now finances Angeli Comlani joins us now with more. Ange.
That's right, Josh. We heard this morning from Regeneron that they did win the bid to acquire 23 and me. And that is pulling it out of bankruptcy where it has been for the last few months. As we know, the company has struggled despite having a popular DNA testing at home kit. And it also kind of helps this this bid kind of helps uh cement a strategy that 23 and me had actually tried to pursue many years ago on its own. And that is to really link up its DNA database with the uh pharmaceutical industry and trying to discover treatments. So this bid for 256 million is now what is uh focused on with this court proceeding. They have until June 10th for any objections to come through, as well as uh until July 1st is when they can initially close the deal. So that's when we have the timeline to look out for. Uh the business is basically everything to do with the genetics business, so nothing to do with the telehealth, the pharmacy fill, um as well as the lab uh processing business that that 23 and me has, that includes lemonade health. That's the telehealth uh services. So this is just wrapping up, you know, what what Regeneron really is focused on here is the data bank. And that really is uh already something that the company says that it has already done. They have about 3 million users data and are now looking to add what 23 and me has. They did inquire about the privacy. They have made an emphasis on ensuring data privacy. We know that, of course, the 23 and me suffered a data breach recently, so that that's one focus. And then in addition, we know that the California attorney general had put a specific focus on profiles and uh encouraging users to delete those profiles. Regeneron said that they are really focusing on that aspect of it to ensure that those who have already had their information in the system feel secure about that. So a lot going on, you know, with respect to what happens to that data and how the company will exactly use it, whether or not it is going to be part of their research center or continue to uh do the drug discovery. We'll have to hear more as soon as those plans pan out.
Angeli, thank you so much. Appreciate it.
