A bankruptcy court has approved the sale of 23andMe to TTAM Research Institute. In an email sent out to customers on Tuesday, July 1, the genetic testing firm announced the deal is likely to go through by July 8.
23andMe sale
TTAM purchased the fledgling company for $305 million after 23andMe filed for bankruptcy back in March. California-based TTAM is led by former 23andMe CEO Anne Wojcicki.
“Core to my beliefs is that individuals should be empowered to have choice and transparency with respect to their genetic data and have the opportunity to continue to learn about their ancestry and health risks as they wish,” Wojcicki said in a statement. “The future of healthcare belongs to all of us.”
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This sale replaces a previous bid from Regeneron Pharmaceuticals, which wanted to purchase the company for $256 million.
TTAM’s acquisition also includes Lemonaid Health, a telemedicine company purchased by 23andMe back in 2021 for $400 million.
Customer privacy
In their email to customers, 23andMe emphasized that “customer privacy is at the core of TTAM’s mission.” They also assured customers that any personal data and account information will continue to be safeguarded under 23andMe’s privacy commitments.
Founded in 2006, 23andMe now has around 15 million customers. Those customers do have the ability to opt out of any research or permanently delete their data. That means if you are a customer and delete your data prior to the finalization of the sale, TTAM should not have access to it.
According to their email, 23andMe is required to give customers two days’ notice before the sale is complete, with details on privacy commitments and how to delete their data.
Sale objections
Last month, 27 state attorneys general and the District of Columbia filed a joint lawsuit to block the sale, aiming to protect customers’ personal genetic information.
However, a lawyer who represented Oregon in that lawsuit said this outcome would satisfy the state’s concerns. Not every state is on board, though. The bankruptcy judge who approved the sale acknowledged that Kentucky, Tennessee, Utah, Texas and California still opposed the sale.
California Attorney General Rob Bonta’s office spoke with Politico on Monday, June 30, and said this sale does not comply with California’s Genetic Information Privacy Act, or GIPA, which requires companies to obtain opt-in consent from customers before selling their genetic information to third parties.
“We believe that 23andMe’s proposed bankruptcy sale of vast amounts of genetic data and biological samples to TTAM — or potentially other purchasers — does not comply with GIPA and are disappointed in the court green lighting the sale despite our objection,” Bonta spokesperson Elissa Perez told Politico.
Perez went on to say the state is considering next steps. Meanwhile, the company plans to complete the sale.
“We remain focused on completing the steps necessary to finalize the transaction in the weeks ahead so the Company can move into its next chapter as a nonprofit,” said Mark Jensen, chair of the board and member of the Special Committee of the Board of Directors of 23andMe.
