A federal bankruptcy court approved the $305 million sale of genetic testing company 23andMe to a nonprofit led by the company's co-founder Anne Wojcicki on Monday, ending months of legal wrangling over the fate of genetic data belonging to 15 million customers.
The acquisition by Wojcicki's TTAM Research Institute caps a tumultuous year for the once-$6 billion company, which filed for Chapter 11 bankruptcy in March amid mounting losses and privacy concerns following a 2023 data breach.
U.S. Bankruptcy Judge Brian Walsh approved the transaction despite objections from 27 states and the District of Columbia, who sued to block the sale without explicit customer consent12. California Attorney General Rob Bonta's office said Monday the sale "does not comply" with the state's Genetic Information Privacy Act, suggesting further legal challenges ahead3.
TTAM outbid pharmaceutical giant Regeneron, which had offered $256 million in May for 23andMe's research operations and customer database45. The nonprofit plans to maintain existing privacy policies while adding enhanced data security measures, according to a company statement1.
"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 said1. "As a nonprofit, TTAM will be a champion of improving our knowledge of DNA for the public good."
The sale has sparked intense debate over genetic data ownership. Oregon Attorney General Dan Rayfield argued in the states' lawsuit: "This isn't just data — it's your DNA. It's personal, permanent, and deeply private"1.
Privacy fears prompted 1.9 million users to delete their accounts during the bankruptcy proceedings2. Judge Walsh acknowledged in his Friday ruling that "a company's sale of genetic data is a scary proposition," but noted that Wojcicki would "improve privacy practices while honoring customers' rights to delete their accounts"2.
Founded in 2006, 23andMe pioneered consumer genetic testing but struggled to develop a sustainable business model after going public in 202112. The company's board of directors resigned en masse in 2024 following disagreements with Wojcicki over the company's direction2.
Wojcicki resigned as CEO when 23andMe filed for bankruptcy but remained on the board throughout the proceedings2. The acquisition includes the company's telehealth subsidiary Lemonaid Health, purchased for $400 million in 20213.
The transaction is expected to close within weeks, though state legal challenges may complicate the timeline34.
