23andMe Faces Bidding Controversy as Co-Founder Offers $305M for Genetic Data Assets

Bankrupt genetic testing firm 23andMe is seeking to reopen bidding on its assets, including over 15 million customer DNA profiles, after co-founder Anne Wojcicki submitted a late $305 million offer through her nonprofit TTAM Research Institute. The company had previously accepted a $256 million bid from Regeneron Pharmaceuticals following a May bankruptcy auction.

On Wednesday, 23andMe asked U.S. Bankruptcy Judge Brian Walsh in St. Louis for permission to reconsider buyers, arguing that TTAM has now demonstrated sufficient funding to complete the higher bid. Regeneron, however, criticized the move as unfair and requested a $10 million breakup fee if Wojcicki’s bid prevails. “The auction was over, the rules were clear,” said Regeneron’s attorney, Emil Kleinhaus.

The controversy comes amid mounting concerns over the sale of sensitive genetic data. The company, based in South San Francisco, filed for Chapter 11 bankruptcy in March after a sharp decline in consumer demand and a major 2023 data breach that exposed the personal information of millions. The potential transfer of genetic profiles to new owners has raised alarms among U.S. lawmakers, who fear misuse of the data.

23andMe’s auction initially valued TTAM’s bid at just $146 million, naming it a backup offer. With TTAM now presenting a significantly higher proposal, the court must decide whether to reopen the sale process, potentially reshaping the outcome of one of the most high-stakes data asset transfers in recent years.

The outcome could impact the future of genetic privacy and reshape the landscape of direct-to-consumer DNA testing, as industry players and privacy advocates closely monitor the case.