Investing.com -- Shares of Regeneron Pharmaceuticals (NASDAQ: REGN ) climbed 2% today following the announcement that the company has won the bid to purchase the assets of 23andMe, a leading human genetics and biotechnology firm, in a bankruptcy auction. The acquisition, valued at $256 million, is set to enhance Regeneron’s genetics-guided research and drug development capabilities.

Regeneron, a biotechnology company with a focus on developing medicines for serious diseases, has been named the successful bidder for 23andMe’s assets, including its Personal Genome Service, Total Health and Research Services business lines, and associated Biobank. The transaction is contingent on bankruptcy court and regulatory approvals and is expected to close in the third quarter of 2025.

The planned purchase will allow Regeneron to integrate 23andMe’s extensive genetic data into its research efforts, potentially leading to new medical advancements. Regeneron has stated its commitment to maintaining the privacy and security of 23andMe’s customer data, emphasizing its readiness to work with an independent Customer Privacy Ombudsman appointed by the court.

George D. Yancopoulos, M.D. Ph.D., President and Chief Scientific Officer of Regeneron, highlighted the company’s pioneering role in DNA-based drug discovery and its intention to further 23andMe’s mission of providing insights into personal health through genetics. Aris Baras, MD, Senior Vice President and Head of the Regeneron Genetics Center, reiterated the company’s dedication to data privacy and ethical standards, and the shared vision with 23andMe in harnessing the power of genetics.

The acquisition does not include 23andMe’s Lemonaid Health business, and 23andMe will continue to operate as a personal genomics service under Regeneron’s ownership. Further details regarding the operating plans will be disclosed upon the closing of the transaction.

Interim CEO of 23andMe, Joe Selsavage, expressed optimism about the agreement with Regeneron, citing the company’s expertise in genetic sequencing and discovery as a boon for 23andMe’s mission and customers.

Regeneron has appointed Wachtell, Lipton, Rosen & Katz as its legal advisor for the transaction. As the market reacts to this strategic acquisition, investors are closely monitoring the potential impacts on Regeneron’s research capabilities and future growth.

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