23andMe : Bankrupt genetic testing company 23andMe is restarting its asset auction after co-founder and former CEO Anne Wojcicki submitted a higher $305 million bid through her nonprofit TTAM Research Institute — overtaking the previous $256 million winning bid from Regeneron Pharmaceuticals.
The decision, approved by U.S. Bankruptcy Judge Brian Walsh in St. Louis, comes after Wojcicki challenged the fairness of the initial auction process. She argued that her participation was unfairly limited and that her maximum bid was capped below Regeneron’s offer. The court sided with reopening the auction to ensure a transparent and competitive process.
Regeneron, which had been declared the winning bidder in May, is still interested in acquiring 23andMe’s assets but now demands a $10 million breakup fee if Wojcicki’s bid ultimately wins. “The auction was over, the rules were clear,” said Regeneron attorney Emil Kleinhaus, calling the move a “do-over” that undermines established auction procedures.
The renewed bidding process allows Wojcicki to start at $305 million, while Regeneron may counter at a minimum of $315 million. Both sides will then be allowed to submit one final offer.
23andMe, based in South San Francisco, filed for Chapter 11 bankruptcy in March following a sharp drop in consumer demand and a major 2023 data breach that exposed the genetic and personal data of millions of customers. The bankruptcy sale includes over 15 million DNA profiles, which has triggered privacy concerns among lawmakers and customers alike.
The case has reignited debate about the ethical handling of sensitive genetic data during corporate sales. While Wojcicki’s nonprofit bid has raised hopes of keeping 23andMe’s data in more protective hands, the final outcome hinges on the next round of competitive offers.