23andMe Bankruptcy Auction Win Adds Big Piece to Regeneron’s Gene-Based Drug R&D Efforts

Regeneron Prescribed drugs, an organization that has been analyzing genetic knowledge as a part of its drug analysis for greater than a decade, is augmenting its capabilities in a giant means with the $256 million acquisition of property from genetic testing firm 23andMe.

The acquisition follows the collection of Regeneron’s bid because the winner the public sale course of that was a part of 23andMe’s Chapter 11 chapter proceedings. In line with a 23andMe regulatory submitting, Regeneron’s bid beat six different certified bidders that participated within the public sale. Not one of the different bidders had been recognized, however after the chapter submitting was introduced in March, 23andMe co-founder and former CEO Anne Wojcicki stated she resigned from her publish in order that she may bid for the corporate below the public sale course of. Over the previous 12 months, Wojicki’s efforts to take 23andMe personal had been unsuccessful.

Regeneron is getting “considerably all” of 23andMe, together with the genetic testing firm’s Private Genome Service, Complete Well being and Analysis Companies enterprise strains, and its Biobank and related property. The Tarrytown, New York-based drugmaker stated all client genome companies provided by 23andMe will proceed uninterrupted. Regeneron stated it would adjust to 23andMe’s client privateness insurance policies and relevant legal guidelines concerning the therapy of buyer knowledge.

Regeneron is is ready to element the way it intends to make use of buyer knowledge and the privateness measures it has in place for evaluate by a court-appointed, unbiased Buyer Privateness Ombudsman and different events, the corporate stated. Excluded from the acquisition is Lemonaid Well being, an internet pharmacy that 23andMe acquired in 2021. 23andMe will wind down these property quickly after the transaction closes.

Whereas 23andMe is greatest recognized for its client genetics exams, the corporate additionally tried to leverage the info it collected for drug analysis. It labored with pharmaceutical corporations, permitting them to make use of de-identified genetic knowledge from its databases. This work by no means grew to become a giant a part of 23andMe’s enterprise, however it seems to be necessary to Regeneron’s plans.

In 2013, Regeneron began a genomic analysis initiative referred to as the Regeneron Genetics Heart, or RGC. The corporate says this wholly owned subsidiary has a database of greater than 2.7 million sequenced exomes and de-identified well being info. For context, 23andMe has stated its biobank has genetic info from greater than 15 million prospects.

RGC applies knowledge analytics instruments and machine-learning strategies to those knowledge to seek out associations between genes and ailments as a technique to information Regeneron’s drug R&D. In its annual report, Regeneron says RGC’s analysis efforts have led to the identification of greater than 30 novel genetic targets. These targets stay undisclosed, however Regeneron stated analysis on them is constant with different applied sciences owned by the corporate. 23andMe provides RGC extra genetic knowledge to research.

“We’ve deep expertise with large-scale knowledge administration, having labored with collaborators world wide to hyperlink deidentified DNA sequences from almost three million consented individuals to digital well being information, safely and securely enabling future medical advances,” Regeneron President and Chief Scientific Officer George Yancopoulos stated in a ready assertion. “We imagine we may also help 23andMe ship and construct upon its mission to assist these concerned with studying about their very own DNA and how you can enhance their private well being, whereas furthering Regeneron’s efforts to make use of large-scale genetics analysis to enhance the way in which society treats and prevents sickness total.”

The acquisition nonetheless wants courtroom and regulatory approvals. A listening to earlier than the chapter courtroom is scheduled for June 17. Regeneron expects to shut the transaction within the third quarter of this 12 months.

Picture: Michael Nagle/Bloomberg, by way of Getty Pictures