23andme: Yet more auctions planned for company and gene data records

The genetic analysis company 23andme wants to hold a new auction for the gene data it has collected and receive at least 50 million US dollars more for it. The company has reached an agreement with a group led by former boss Anne Wojcicki and Regeneron Pharmaceuticals, reports Bloomberg. If the competent insolvency court agrees, it will once again be a question of how much the data stored at 23andme is worth. The US biotechnology company Regeneron had actually won the first auction and was supposed to take over 23andme for 256 million US dollars. Wojcicki wants to take over 23andme with a research organization that she recently founded, adds the Wall Street Journal.

Regeneron to be allowed to make final bid

As both news portals write, the three parties have agreed that a further auction round should begin with an initial bid of 305 million US dollars from TTAM. This is Wojcicki's research institute, and the sum corresponds to the bid that was received after the end of the first round and with which the new auction is justified. Should Regeneron wish to continue bidding, it would then have to offer 315 million US dollars. TTAM may then bid again, and Regeneron retains the right to make a final bid. If the insolvency court approves the project and TTAM emerges as the winner, the institute will accept Regeneron's commitments regarding the handling of the data, Bloomberg quotes.

23andme filed for bankruptcy in the spring as a late consequence of a data leak that was made public in the fall of 2023. At the time, the company had stated that the highly sensitive data of people who had had their genes analyzed had been offered for sale by criminals. It gradually emerged that unknown individuals had managed to access account data using credential stuffing. This means that they were able to log in with captured access data from other services because they were reused for 23andme. Ultimately, the data of almost seven million users was offered for sale on the darknet. A class action lawsuit ended in a settlement.

At an auction in May, Regeneron Pharmaceuticals actually prevailed and wanted to take over the insolvent genetic analysis company. All of 23andme's existing data protection provisions were to be maintained, and the genetic analysis business for private individuals was to be continued. 23andme was to remain a subsidiary. Regeneron wanted to use the data for drug research. After Wojcicki had wanted to take over her former company for 40 million US dollars shortly before its insolvency, she then significantly increased her bid. It remains to be seen whether she will get her chance after all. She was one of the founders of the genetic analysis company in 2006.

(mho)