This development injects significant uncertainty into the acquisition by Regeneron Pharmaceuticals, which had recently agreed to purchase 23andMe for $256 million.
The embattled genetic testing firm, based in South San Francisco, California, declared bankruptcy in April. This move came in the wake of dwindling consumer interest and a major 2023 data breach that compromised the sensitive genetic and personal information of millions of its customers. The bankruptcy filing aimed to facilitate a sale of its business through an auction process.
Last month, it appeared that Regeneron Pharmaceuticals had secured the winning bid, offering $256 million. This offer surpassed an earlier $146 million bid put forth by Wojcicki herself, in conjunction with TTAM Research Institute. TTAM, described as a California non-profit public benefit corporation, was also founded by Wojcicki.
However, in a May 31 court filing, Wojcicki lodged a serious accusation: she claimed that 23andMe’s debtors had deliberately skewed the sales process to favor Regeneron and disadvantage TTAM. Both TTAM and Wojcicki alleged that 23andMe’s financial and legal advisors unfairly imposed a $250 million cap on their maximum bid.
They contend this was due to unsubstantiated concerns regarding TTAM's "financial wherewithal." Furthermore, the plaintiffs assert that the auction was prematurely concluded, denying them the opportunity to submit a bid that would have exceeded $280 million.
In response to these allegations, the company's debtors stated in the filing that the auction results were the culmination of "extensive and careful consideration" by a four-member special committee composed of independent directors.
The legal wrangling continues, with 23andMe now seeking court approval for Wojcicki and Regeneron to submit final proposals by June 12. Adding another layer of complexity, 23andMe is also seeking a $10 million breakup fee for Regeneron should Wojcicki’s bid ultimately prevail.
Regeneron, for its part, has maintained a stance of non-comment on the ongoing proceedings, reiterating its intention to close the acquisition as planned. As of now, lawyers representing 23andMe’s debtors and the TTAM parties have not yet responded to requests for comment, leaving the future of 23andMe hanging in the balance.