The bewildered genetic testing company 23AndMe announced on Friday that it had reached an agreement to sell itself to a nonprofit led by the company's co-founder and former CEO Anne Wojcicki.
After a massive cyberattack and a settlement of related lawsuits in 2023, 23andMe filed for bankruptcy in March, and Wojcicki resigned to become an independent bidder for the company. However, Pharmaceutical Company Regeneron was announced as the company's acquirer with a bid of $256 million.
According to the Wall Street Journal, Wojcicki's non-profit TTAM Research Institute resumed the bidding process with an unsolicited bid earlier this month, with Regeneron rejecting TTAM's $305 million offer.
In the announcement, TTAM (an acronym corresponding to 23 first letters and my first letter) informed customers that they would acquire at least two business transactions before the transaction is closed, and said the nonprofit would continue to comply with 23Andme's privacy policy and allow customers to delete data and choose to investigate. He also said it would establish a Consumer Privacy Advisory Committee within 90 days of the closure.
“We are excited to continue the 23andMe mission and help people access, understand and benefit from the human genome,” Wojcicki wrote on LinkedIn. “We believe it is important for individuals to have the opportunity to have choice and transparency regarding their genetic data and continue to learn about their ancestors and health risks as they wish.”
The acquisition still needs to be approved by the Bankruptcy Court and faces additional legal hurdles. A group of 28 state attorney generals led by New York's Leticia James filed a lawsuit this week against the sale of the company's assets.
“23andme cannot auction personal genetic information of millions of people without their consent,” James said.
The court-appointed Privacy Ombudsman also said it is not clear that 23Andme's privacy policy allows the sale of genetic data.
It is also not clear that 23andme can regain consumer trust if the transaction has passed. The company's interim CEO, Joseph Cervage, recently told the House Oversight Committee that 15% of its customers have asked to delete their data since the company filed for bankruptcy.