When the mail-in ancestry company 23andMe filed for bankruptcy, Regeneron Pharmaceuticals stepped in to snap it up. Though in the end the Tarrytown-based company was outbid, the scenario raised a $64,000 question: What was going to happen to all that genetic information? Inquiring minds wanted to know.
In May of this year, Tarrytown-based Regeneron Pharmaceuticals made national headlines when it announced a $256 million deal to purchase DNA testing company 23andMe via a bankruptcy auction. As part of that acquisition, Regeneron was to absorb 23andMe’s assets as well—most notably, its user and customer data.
On its surface, the deal was a boon for privately held Regeneron. But the company, which has more than 3,000 employees split among its Sleepy Hollow and Tarrytown campuses, also came under scrutiny amid fears about what, exactly, it intended to do with the gold mine of personal and genetic data from 23andMe. That question prompted a pointed response from public officials, including New York State Attorney General Letitia James and dozens of other attorneys general around the country.
“23andMe cannot auction millions of people’s personal genetic information without their consent,” James said in a June statement. “New Yorkers and many others around the country trusted 23andMe with their private information and they have a right to know what will be done with their information. My office is joining 27 other attorneys general to protect people’s most private information and to make sure 23andMe abides by the law.”
“In April, the company announced that it had dedicated $500 million over the next five years to a new venture arm, Regeneron Ventures.”
Regeneron, however, had promised to “comply with the company’s privacy policies and applicable law, process all customer personal data in accordance with the consents, privacy policies and statements, terms of service, and notices currently in effect and have security controls in place designed to protect such data.” The concerns about data privacy, however, turned out to be overblown but brought up important points on what information can be bought and sold.
Outbid, but not outdone
The auction for 23andMe’s assets was reopened in July, and Regeneron was subsequently outbid by TTAM Research Institute, a non-profit corporation founded by 23andMe’s co-founder Anne Wojcicki. Regeneron did not raise its offer and did not end up acquiring 23andMe’s data and assets.
“Regeneron was originally declared the successful bidder in the bankruptcy auction, but once bidding was reopened, it declined to submit a higher offer based on its assessment of 23andMe’s remaining value,” a Regeneron spokesperson told 914INC. “Regeneron remains committed to the responsible use of data to advance human health and continues our global leadership in genetics-based research and therapeutics through the work of the Regeneron Genetics Center, Regeneron Genetic Medicines and across the organization.”
Despite being outbid, Regeneron isn’t standing down. In April, the company announced that it had dedicated $500 million over the next five years to a new enterprise arm, Regeneron Ventures. This fund will be independent of Regeneron itself and will be managed by former Regeneron executives Jay S. Markowitz, M.D., and Michael Aberman, M.D., and will be focused on discovering, funding, and incubating emerging biopharmaceutical, healthcare, and health technology startups.
“Our goal is to cultivate an ecosystem where the next generation of biotech companies can thrive, drawing on the lessons learned and successes achieved at Regeneron and throughout our careers,” said Aberman, in a statement. “Together, we will strive to identify and support groundbreaking advancements that push the boundaries of what’s possible in science and medicine.”
Related: Insulators Local Union 91 Supports Energy Conservation in the 914
