U.S. biotechnology corporation Regeneron Pharmaceuticals announced on the 19th (local time) that it will acquire the bankrupt genetic analysis company 23andMe for $256 million (approximately 356 billion won).
Founded in 2006, 23andMe is a corporation that garnered market attention by launching a service that informs users of the risks of developing diseases such as cancer, diabetes, and Parkinson's disease by sending saliva in a container. The company even attracted investment from Google, the largest internet corporation in the U.S.
Though the company rapidly rose in the market to a market capitalization of $6 billion (approximately 8 trillion won), it faced a decline due to poor business performance. In December 2023, a hacking incident resulted in the leaking of personal information of 6.9 million individuals, causing it to lose market trust. Subsequently, in March of this year, co-founder Anne Wojcicki resigned from her position, and the company was put up for sale in bankruptcy auction.
Regeneron, which acquired 23andMe, possesses blockbuster products such as Eylea, a treatment for eye diseases co-developed with German pharmaceutical company Bayer, and Dupixent, an atopic dermatitis treatment co-developed with French Sanofi. Last year's revenue was $14.2 billion (19.755 trillion won). It is also conducting research and development on gene therapy candidate substances targeting various diseases.
The assets of 23andMe that Regeneron is acquiring include personal genome analysis services, healthcare and research divisions, and related biobanks. 23andMe's telemedicine subsidiary Lemonaid Health was excluded from the list of assets being acquired. The acquisition transaction is expected to be completed in the third quarter of this year, pending approval from the courts and regulatory authorities.
Through this acquisition, Regeneron stated that it plans to integrate vast genetic information into its genome-based new drug development. Once the transaction is finalized, 23andMe is expected to continue operating its personal genome analysis services under Regeneron.
Attention is also focused on how Regeneron will revive 23andMe's genome analysis services in the market. 23andMe sold genetic ancestry testing kits. In the multiethnic and multicultural society of the U.S., ancestry testing gained immense popularity; however, it has limitations for long-term growth. Since there is no reason to take a genetic test again after the first one, this has been pointed out as a major reason for the bankruptcy as it did not lead to revenue generation.
Meanwhile, Regeneron's revenue for the first quarter of this year was $3 billion (approximately 4.1721 trillion won), a decrease of 4% compared to the same period last year.