Regeneron Pharma To Buy 23andMe In Bankruptcy Proceedings For $256 Mln; 23andMe Shares Surge

(RTTNews) - Regeneron Pharmaceuticals, Inc. (REGN) announced Monday that it has been named the bidder in the bankruptcy auction for substantially all of the assets of 23andMe Holding Co. (MEHCQ), a human genetics and biotechnology company, for $256 million.

The deal is expected to close in the third quarter, subject to bankruptcy court and regulatory approvals.

Regeneron intends to acquire 23andMe's Personal Genome Service or PGS, Total Health and Research Services business lines, together with its Biobank and associated assets. 23andMe will continue all consumer genome services uninterrupted.

Regenerons purchase does not include 23andMe's Lemonaid Health business.

Following the deal, 23andMe will be operated as a wholly owned direct or indirect subsidiary of Regeneron and continue operations as a personal genomics service.

Regeneron said it intends to ensure compliance with 23andMe's consumer privacy policies and applicable laws with respect to the treatment of customer data.

The company added that it is prepared to detail the intended use of customer data and the privacy programs and security controls in place for review by a court-appointed, independent Customer Privacy Ombudsman and other interested parties.

George Yancopoulos, co-Founder, Board co-Chair, President and Chief Scientific Officer of Regeneron, said, "We have deep experience with large-scale data management, having worked with collaborators around the world to link deidentified DNA sequences from nearly three million consented participants to electronic health records, safely and securely enabling future medical advances. We believe we can help 23andMe deliver and build upon its mission to help those interested in learning about their own DNA and how to improve their personal health, while furthering Regenerons efforts to use large-scale genetics research to improve the way society treats and prevents illness overall."

Regenerons legal advisor for the transaction is Wachtell, Lipton, Rosen & Katz.

On the Nasdaq, Regeneron shares were trading at $596.59, up 0.38% percent.

On the OTC Markets, 23andMe shares were at $2.2000, up 144.44%.