By Ken Macon – Reclaim The Net
Facing growing scrutiny over privacy and legal challenges, genetic testing firm 23andMe is heading into a second auction after its first sale attempt fell apart.
Former CEO Anne Wojcicki, now aligned with a California-based research group, has submitted a $305 million bid to reclaim the company’s core asset: a massive collection of consumer DNA data. Her offer exceeds the previous high bid by close to $50 million.
Regeneron Pharmaceuticals had initially been declared the winner of the first auction with a $256 million proposal. That decision was quickly contested by Wojcicki in federal court, where she argued the auction process had been skewed. This legal fight prompted all parties, including 23andMe, Regeneron, and Wojcicki, to meet before a bankruptcy judge to negotiate new auction terms.
The revised structure agreed upon this week in St. Louis, lays out a sequence of offers designed to resolve the disputes that marred the first round.
More: Who Owns Your DNA Now?
Wojcicki’s group will lead with a $305 million opening bid. Regeneron will then be allowed to respond with a minimum offer of $315 million. If they do, Wojcicki and her partners can counter with a higher bid, followed by one final opportunity for Regeneron to match or exceed it.
While Wojcicki’s legal team pushed back against a rule that gives Regeneron the final bid, they accepted the terms as a fairer setup.
“We don’t like the last look” rule, said her attorney Susheel Kirpalani in court. Even so, he added, the new process offers a more level playing field for his client and the TTAM Research Institute.
The dispute revolves around control of one of the largest privately held genetic databases in the world. 23andMe amassed its data from more than 15 million users through direct-to-consumer health and ancestry testing. Despite strong brand recognition, the company filed for bankruptcy in March, having failed to convert its customer base into a sustainable revenue stream.
Multiple stakeholders, including unsecured creditors and shareholders, have endorsed the updated auction process in hopes of a more transparent resolution. The outcome also carries broader implications for data protection.
The unfolding sale of 23andMe’s vast trove of consumer DNA data should serve as a wake-up call about the serious risks of treating biometric information as a commercial asset.
Millions of individuals voluntarily submitted their genetic material to the company, often believing it would be used strictly for personal health insights or ancestry tracing.
Now, amid bankruptcy proceedings, that deeply personal data is on the auction block, where it may end up in the hands of the highest bidder.
While the courts negotiate terms between bidders, the individuals whose DNA is being bartered have little to no say in how their data might be used, shared, or monetized moving forward.