Table of Contents FOR THE TRANSITION PERIOD FROM___________ TO___________ UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ____________________________________________ (Mark One) x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2025 OR o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number 001-39587 ______________________________________ ...

Business Overview - 23andMe operates with two business verticals: Consumer and Research[11] - The Consumer business focuses on personalized health services, ancestry, and recurring subscription revenue[13] - The Research business leverages the world's largest re-contactable genetic and phenotypic data engine for data licensing, target discovery, and research services for pharma[15] - The company has genotyped over 15 million customers, with over 84% of customers opting-in to research, generating 4.8 billion phenotypic data points[17] Consumer Health - Genetics plays a role in 8 out of the 10 leading causes of death in the US[24] - 23andMe helps consumers identify their genetic risks, with over 28,000 customers identified with BRCA1/BRCA2 variants and over 4 million with a higher likelihood of type 2 diabetes[32] - 76% of customers report taking a positive health action after learning about their genetics[33] - 23andMe offers direct access to care with Lemonaid Health Telehealth Services, including access to GLP-1 drugs for weight loss in a number of states[43, 47] Research and AI - 23andMe has a large biobank with over 9 million research participants with ILD data sharing consent and over 5 million biobanked samples[65] - The company is pursuing multiple approaches to integrate Claims and EHR data into its existing data ecosystem, with over 5 million 23andMe customers having both Claims and EHR data[67, 71] - 23andMe is investing in AI to drive the next wave of insights and value-creation, leveraging its large-scale, relevant, and unique data[93] Financials - In FY2024, PGS revenue was $168 million with subscription revenue of $20 million[57] - For the three months ended December 31, 2024, Consumer Services revenue was $40 million (66% of total revenue) and Research Services revenue was $21 million (34% of total revenue)[104] - Total revenue for the three months ended December 31, 2024, was $60 million, compared to $45 million for the same period in FY2024[104] - Total revenue for FY2024 was $220 million, with Consumer Services accounting for $202 million (92%) and Research Services accounting for $17 million (8%)[104] - The company has $216 million in cash to support its plans for targeted investment in high ROI growth initiatives[103]

Part I [Business](index=5&type=section&id=Item%201.%20Business) The company operates direct-to-consumer genetic testing and telehealth, undergoing Chapter 11 bankruptcy and asset sale - On March 23, 2025, the company filed for **Chapter 11 bankruptcy protection** and is operating as a 'debtor-in-possession'[22](index=22&type=chunk) - The company has entered into an Asset Purchase Agreement to sell substantially all of its assets for **$256.0 million**, with a competing bid of **$305.0 million** later submitted[25](index=25&type=chunk)[26](index=26&type=chunk) - In November 2024, the company discontinued its **Therapeutics operating segment** and implemented a significant reduction in force to reduce operating costs[21](index=21&type=chunk) PGS Customer and Membership Metrics | Metric | As of March 31, 2025 | As of March 31, 2024 | Change | | :--- | :--- | :--- | :--- | | PGS Customers | ~14.4 million | ~15.1 million | ~5% decrease | | 23andMe+ Members | ~564,000 | ~562,000 | ~0.4% increase | Revenue Contribution by Source (Fiscal Years) | Revenue Source | FY 2025 | FY 2024 | FY 2023 | | :--- | :--- | :--- | :--- | | PGS Revenue | ~74% | ~76% | ~68% | | Membership Revenue | ~19% | ~9% | N/A | [Products and Services](index=7&type=section&id=Item%201.%20Business%23Products%20and%20Services) The company offers Personal Genome Service (PGS), telehealth via Lemonaid Health, and research services leveraging its genetic database - PGS services are the main source of revenue, accounting for approximately **74% of total revenue** in fiscal 2025[36](index=36&type=chunk) - The 23andMe+ Premium membership service grew to represent approximately **19% of total revenue** in fiscal 2025, up from **9% in fiscal 2024**[34](index=34&type=chunk) - The **Lemonaid telehealth platform** offers online medical care and pharmacy fulfillment, operating through affiliated Professional Medical Corporations (PMCs)[39](index=39&type=chunk)[40](index=40&type=chunk) - The company entered a new **non-exclusive data license agreement with GSK** in October 2023, following the expiration of an exclusive agreement in July 2023[42](index=42&type=chunk) [Business Strategy](index=9&type=section&id=Item%201.%20Business%23Business%20Strategy) The strategy focuses on empowering customers and scaling research, despite declining PGS customers due to bankruptcy and cyber incidents - The number of PGS customers decreased by approximately **5%** from **15.1 million** at the end of fiscal 2024 to **14.4 million** at the end of fiscal 2025, further declining to **14.0 million** by May 31, 2025[46](index=46&type=chunk) - The 23andMe+ membership base was approximately **527,000** as of May 31, 2025, down from **564,000** at the end of fiscal 2025[51](index=51&type=chunk) - A core strategic pillar is **scaling the research platform**, leveraging a vast database to identify genetic pathways and disease risk predictors[49](index=49&type=chunk) [Competition](index=11&type=section&id=Item%201.%20Business%23Competition) The company faces intense competition in consumer genetics, telehealth, and research services, including emerging AI-driven solutions - The company is the only direct-to-consumer genetic testing company with **eight FDA authorizations and clearances**, viewed as a key competitive advantage[57](index=57&type=chunk) - There is **increasing competition in telehealth** from new entrants and traditional healthcare providers expanding into virtual care[58](index=58&type=chunk) - The company could face future competition from entities using **AI and large language models (LLMs)** for consumer product development and research services[59](index=59&type=chunk)[61](index=61&type=chunk) [Government Regulation](index=13&type=section&id=Item%201.%20Business%23Government%20Regulation) The company is heavily regulated, with FDA oversight on genetic reports, CLIA compliance for labs, state laws for telehealth, and global data privacy regulations - The company's genetic health, carrier status, and pharmacogenetic reports are **regulated by the FDA as medical devices**, with multiple De Novo authorizations and 510(k) clearances obtained[73](index=73&type=chunk)[80](index=80&type=chunk) - A recent court ruling on March 31, 2025, stated the **FDA lacks authority to regulate laboratory-developed tests (LDTs)**, suspending the FDA's LDT Final Rule[77](index=77&type=chunk) - The telehealth business operates through affiliated **Professional Medical Corporations (PMCs)** to comply with state laws prohibiting the corporate practice of medicine[95](index=95&type=chunk)[96](index=96&type=chunk) - The company is subject to numerous data protection laws, such as **CCPA and GDPR**, which regulate personal and genetic information and impose significant fines for non-compliance[100](index=100&type=chunk)[104](index=104&type=chunk) [Risk Factors](index=21&type=section&id=Item%201A.%20Risk%20Factors) The company faces substantial risks from bankruptcy, declining market, cyber incidents, intense competition, regulatory burdens, and significant financial losses - The **Chapter 11 bankruptcy proceedings** pose significant risks, including the potential for the company's **common stock to become worthless**, delisting from Nasdaq, and high administrative costs[122](index=122&type=chunk)[124](index=124&type=chunk)[128](index=128&type=chunk) - A **criminal cyber incident in October 2023** led to unauthorized user data access, resulting in class action lawsuits and government inquiries[206](index=206&type=chunk)[207](index=207&type=chunk)[208](index=208&type=chunk) - The company has a history of significant losses, with a net loss of **$280.9 million** in fiscal 2025 and an accumulated deficit of **$2.5 billion**, raising **substantial doubt about its ability to continue as a going concern**[301](index=301&type=chunk)[306](index=306&type=chunk) - The **market for personal genetics products has seen a recent decline**, leading to decreased revenues, particularly in PGS revenue[148](index=148&type=chunk)[149](index=149&type=chunk) - The company relies on **sole suppliers** for critical components like saliva collection kits and on a single laboratory for processing, creating significant supply chain risk[160](index=160&type=chunk) [Unresolved Staff Comments](index=55&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company reports no unresolved staff comments from the SEC - None[318](index=318&type=chunk) [Cybersecurity](index=55&type=section&id=Item%201C.%20Cybersecurity) The company's cybersecurity program, led by a CSO and overseen by the audit committee, was enhanced after a 2023 cyber incident - The cybersecurity program is managed by a **Chief Security Officer (CSO)** and overseen by the board's audit committee, which receives regular updates[321](index=321&type=chunk)[325](index=325&type=chunk) - In response to the October 2023 Cyber Incident, the company implemented enhanced security measures, including **mandatory two-step verification** for all customers and resetting passwords[324](index=324&type=chunk) - The company maintains annual certifications for compliance with **ISO/IEC 27001**, **ISO/IEC 27701**, and **ISO/IEC 27018** standards[321](index=321&type=chunk) [Properties](index=56&type=section&id=Item%202.%20Properties) The company abandoned its South San Francisco and Sunnyvale facilities due to restructuring and bankruptcy, retaining its San Francisco headquarters and St. Louis operations - The company **abandoned its South San Francisco lab facility** in December 2024 and its **Sunnyvale facility** in March 2025 as part of its restructuring and bankruptcy[329](index=329&type=chunk) - The **leases for the abandoned facilities are being rejected** through the Chapter 11 process[329](index=329&type=chunk) [Legal Proceedings](index=57&type=section&id=Item%203.%20Legal%20Proceedings) The company is in Chapter 11 bankruptcy, which has stayed substantially all other legal proceedings against it - **Substantially all legal proceedings** against the company have been stayed due to the Chapter 11 Cases[333](index=333&type=chunk) [Mine Safety Disclosures](index=57&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not Applicable[334](index=334&type=chunk) Part II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=57&type=section&id=Item%205.%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) The company's Class A common stock was delisted from Nasdaq post-Chapter 11 and now trades on the OTC Pink Market, with no dividends paid - The company's Class A common stock was **delisted from Nasdaq** and now trades on the **OTC Pink Market** under the symbol 'MEHCQ' as of March 31, 2025[335](index=335&type=chunk) - The company has **not paid any cash dividends** and does not plan to in the foreseeable future[338](index=338&type=chunk) Stock Performance Comparison (June 17, 2021 - March 31, 2025) | Index | Initial Investment ($100) | Value at 3/31/2025 | | :--- | :--- | :--- | | 23andMe Holding Co. | $100.00 | $0.28 | | S&P 500 Health Care Sector | $100.00 | $117.00 | | S&P 500 Index | $100.00 | $132.92 | | Russell 2000 Index | $100.00 | $87.95 | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=58&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) The company's financial condition deteriorated, leading to Chapter 11 bankruptcy, a 14% revenue decrease in FY2025, and a major restructuring - The company has **substantial doubt about its ability to continue as a going concern** due to significant operating losses, its Chapter 11 filing, and an accumulated deficit of **$2.5 billion** as of March 31, 2025[306](index=306&type=chunk)[396](index=396&type=chunk) - The company secured a **Debtor-in-Possession (DIP) credit facility**, initially for **$35.0 million** and later increased to **$60.0 million**, to fund operations during the bankruptcy[360](index=360&type=chunk)[363](index=363&type=chunk) - The **Therapeutics operating segment was discontinued** in November 2024 as part of a major restructuring that included a **40% workforce reduction**[350](index=350&type=chunk)[373](index=373&type=chunk)[374](index=374&type=chunk) Fiscal 2025 vs. 2024 Financial Highlights (Continuing Operations) | Metric | FY 2025 | FY 2024 | % Change | | :--- | :--- | :--- | :--- | | Total Revenue | $189.9M | $219.6M | (14%) | | Gross Profit | $100.0M | $97.9M | 2% | | Gross Margin | 52% | 45% | +7 p.p. | | Loss from Operations | ($240.6M) | ($581.7M) | (59%) | | Net Loss from Continuing Ops | ($235.2M) | ($566.9M) | (59%) | [Results of Operations](index=70&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations%23Results%20of%20Operations) FY2025 revenue from continuing operations decreased 14% to $189.9 million, while net loss narrowed to $235.2 million due to lower operating expenses - FY2025 revenue decreased by **14% YoY**, driven by lower PGS kit sales, partially offset by a **$16.7 million** increase in membership revenue and a **$19.3 million** non-recurring revenue recognition from the GSK data license[426](index=426&type=chunk) - FY2025 gross margin increased to **52%** from **45%** in FY2024, largely due to the high-margin, non-recurring GSK revenue[430](index=430&type=chunk) - Sales and marketing expenses in FY2025 decreased **26%** to **$64.3 million**, primarily from a **$17.6 million** reduction in advertising and brand spending[433](index=433&type=chunk) - Restructuring charges surged to **$61.4 million** in FY2025 from **$4.6 million** in FY2024, mainly due to a **$50.5 million** charge for abandoning the Sunnyvale facility lease[435](index=435&type=chunk) - A goodwill impairment charge of **$351.7 million** was recorded in FY2024, with no corresponding charge in FY2025[436](index=436&type=chunk) [Adjusted EBITDA from Continuing Operations](index=81&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations%23Adjusted%20EBITDA%20from%20Continuing%20Operations) Adjusted EBITDA from continuing operations worsened slightly in FY2025 to a loss of $93.3 million, primarily due to decreased revenue Reconciliation of Net Loss to Adjusted EBITDA (Continuing Operations) | (in thousands) | FY 2025 | FY 2024 | | :--- | :--- | :--- | | Net loss from continuing operations | $(235,196) | $(566,941) | | **Adjustments (selected)** | | | | Depreciation, amortization and impairment | $31,422 | $14,898 | | ROU asset impairment | $33,403 | $— | | Stock-based compensation expense | $53,985 | $108,499 | | Goodwill impairment | $— | $351,744 | | Cyber Incident expenses, net | $21,386 | $1,765 | | Reorganization items | $2,215 | $— | | **Adjusted EBITDA from continuing operations** | **$(93,341)** | **$(90,878)** | - Adjusted EBITDA from continuing operations decreased by **$2.5 million** (a **3% larger loss**) in fiscal 2025 compared to fiscal 2024[467](index=467&type=chunk) [Liquidity, Capital Resources and Going Concern](index=84&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations%23Liquidity%2C%20Capital%20Resources%20and%20Going%20Concern) The company faces severe liquidity constraints and substantial doubt about its going concern ability, with $38.2 million cash and a $2.5 billion accumulated deficit - As of March 31, 2025, the company had unrestricted cash of **$38.2 million** and an accumulated deficit of **$2.5 billion**[476](index=476&type=chunk) - **Substantial doubt exists about the company's ability to continue as a going concern** for one year from the financial statement issuance date[477](index=477&type=chunk) - On May 5, 2025, the company received **$10.0 million** in borrowings under its DIP Facility to fund working capital and reorganization costs[476](index=476&type=chunk) Cash Flow Summary (Fiscal Years) | (in thousands) | FY 2025 | FY 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | $(169,585) | $(164,319) | | Net cash used in investing activities | $(3,703) | $(9,626) | | Net cash (used in) provided by financing activities | $(279) | $3,584 | [Quantitative and Qualitative Disclosures About Market Risk](index=87&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's market risk exposure to interest rates and foreign currency is minimal, as most operations are USD-denominated - The company does not believe it has **no material exposure to interest rate risk**, as its cash equivalents were liquidated post-bankruptcy filing and its cash balance is held in bank deposits[502](index=502&type=chunk) - **Foreign currency risk is minimal** as substantially all revenues and expenses are denominated in U.S. dollars[503](index=503&type=chunk) [Financial Statements and Supplementary Data](index=89&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section presents audited financial statements and KPMG's report, which includes a going concern emphasis and identifies PGS revenue recognition as a critical audit matter [Report of Independent Registered Public Accounting Firm](index=90&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data%23Report%20of%20Independent%20Registered%20Public%20Accounting%20Firm) KPMG's audit report expresses a fair presentation opinion but highlights going concern doubt and identifies PGS revenue recognition as a critical audit matter - The auditor's report includes a **'Going Concern' paragraph**, indicating **substantial doubt** about the company's ability to continue operating[509](index=509&type=chunk) - A **critical audit matter** was identified concerning the sufficiency of audit evidence for the **Personal Genome Service (PGS) revenue recognition**, due to its reliance on complex IT systems[518](index=518&type=chunk) [Consolidated Financial Statements](index=92&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data%23Consolidated%20Financial%20Statements) The consolidated financial statements show a significant decline in assets, a shift to a stockholders' deficit, and a net loss of $280.9 million for FY2025 Consolidated Balance Sheet Highlights (as of March 31) | (in thousands) | 2025 | 2024 | | :--- | :--- | :--- | | Total Assets | $159,894 | $395,167 | | Total Liabilities | $186,636 | $206,647 | | Liabilities subject to compromise | $113,504 | $— | | Total Stockholders' (Deficit) Equity | $(26,742) | $188,520 | Consolidated Statement of Operations Highlights (Year Ended March 31) | (in thousands) | 2025 | 2024 | 2023 | | :--- | :--- | :--- | :--- | | Total Revenue | $189,896 | $219,638 | $299,489 | | Net loss from continuing operations | $(235,196) | $(566,941) | $(210,694) | | Net loss from discontinued operations | $(45,689) | $(99,763) | $(100,962) | | **Net Loss** | **$(280,885)** | **$(666,704)** | **$(311,656)** | [Notes to Consolidated Financial Statements](index=97&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data%23Notes%20to%20Consolidated%20Financial%20Statements) The notes detail Chapter 11 proceedings, discontinued operations, going concern uncertainty, DIP financing, and significant charges including cyber incident settlements - The company is applying **ASC 852 bankruptcy accounting**, resulting in the reclassification of **$113.5 million** of pre-petition liabilities to 'Liabilities subject to compromise' as of March 31, 2025[542](index=542&type=chunk)[641](index=641&type=chunk) - The **Therapeutics segment is accounted for as a discontinued operation**, with general corporate overhead of **$2.4 million** in FY2025 and **$8.2 million** in FY2024 reallocated to continuing operations[644](index=644&type=chunk) - The company recognized **$17.8 million** in breakage revenue from unreturned PGS kits in fiscal 2025, down from **$22.1 million** in fiscal 2024[653](index=653&type=chunk) - The company has agreed to an aggregate of **$37.5 million** to settle U.S. claims related to the October 2023 Cyber Incident, with **$39.1 million** accrued for loss contingencies and **$18.1 million** in probable insurance recoveries[714](index=714&type=chunk)[716](index=716&type=chunk) - A **one-for-twenty reverse stock split** was effected on October 16, 2024, with all share and per-share data retroactively adjusted[543](index=543&type=chunk)[719](index=719&type=chunk) [Changes in and Disagreements with Accountants on Accounting and Financial Disclosure](index=139&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20with%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) The company reports no changes in or disagreements with its accountants on accounting and financial disclosure - None[776](index=776&type=chunk) [Controls and Procedures](index=139&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded disclosure controls were effective as of March 31, 2025, remediating a prior material weakness related to Audit Committee independence - Management concluded that disclosure controls and procedures were **effective** as of March 31, 2025[779](index=779&type=chunk) - A **material weakness** identified in Q2 and Q3 of fiscal 2025 related to the lack of an independent Audit Committee was **fully remediated** by March 31, 2025[784](index=784&type=chunk)[785](index=785&type=chunk)[786](index=786&type=chunk) - The remediation was achieved by appointing **three new independent directors** to the Board and Audit Committee on October 29, 2024[786](index=786&type=chunk) [Other Information](index=141&type=section&id=Item%209B.%20Other%20Information) The company amended its DIP credit facility on June 5, 2025, increasing the total facility size to $60.0 million - The DIP credit facility was increased to **$60.0 million** via an amendment on June 5, 2025[788](index=788&type=chunk) [Disclosure Regarding Foreign Jurisdictions that Prevent Inspections](index=141&type=section&id=Item%209C.%20Disclosure%20Regarding%20Foreign%20Jurisdictions%20that%20Prevent%20Inspections) This item is not applicable - Not applicable[790](index=790&type=chunk) Part III Part III incorporates information by reference from the 2025 Proxy Statement, covering directors, executive compensation, security ownership, and accounting fees [Directors, Executive Officers and Corporate Governance](index=141&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) Information on directors, executive officers, and corporate governance is incorporated by reference from the 2025 Proxy Statement - Information for this item is **incorporated by reference** from the 2025 Proxy Statement[792](index=792&type=chunk) [Executive Compensation](index=141&type=section&id=Item%2011.%20Executive%20Compensation) Executive and director compensation details are incorporated by reference from the 2025 Proxy Statement, including a compensation recoupment policy - The company has adopted a **compensation recoupment policy** to recover erroneously awarded incentive-based compensation following a financial restatement[793](index=793&type=chunk) [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=142&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) Security ownership and equity compensation plan details are incorporated by reference from the 2025 Proxy Statement - Information for this item is **incorporated by reference** from the 2025 Proxy Statement[795](index=795&type=chunk) [Certain Relationships and Related Transactions, and Director Independence](index=142&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Director%20Independence) Information on related person transactions and director independence is incorporated by reference from the 2025 Proxy Statement - Information for this item is **incorporated by reference** from the 2025 Proxy Statement[796](index=796&type=chunk) [Principal Accounting Fees and Services](index=142&type=section&id=Item%2014.%20Principal%20Accounting%20Fees%20and%20Services) KPMG LLP is the independent auditor, with fee details incorporated by reference from the 2025 Proxy Statement - The company's independent auditor is **KPMG LLP**[796](index=796&type=chunk)[797](index=797&type=chunk) Part IV Part IV lists exhibits filed with the Form 10-K, including key agreements like asset purchase, DIP financing, and corporate governance documents [Exhibits, Financial Statement Schedules](index=143&type=section&id=Item%2015.%20Exhibits%2C%20Financial%20Statement%20Schedules) This section indexes all exhibits filed with the Form 10-K, including key agreements like the Asset Purchase and DIP Loan agreements - The **Asset Purchase Agreement with Regeneron Pharmaceuticals**, dated May 17, 2025, is filed as Exhibit 2.5[800](index=800&type=chunk) - The **Senior Secured, Super-Priority Debtor-in-Possession Loan and Security Agreement** and its amendments are filed as Exhibits 10.29, 10.30, and 10.31[802](index=802&type=chunk) [Form 10-K Summary](index=145&type=section&id=Item%2016.%20Form%2010-K%20Summary) This item is not applicable - None[803](index=803&type=chunk)

Core Viewpoint - Regeneron Pharmaceuticals is acquiring 23andMe out of bankruptcy for $256 million, gaining access to a significant collection of genetic data and samples from over 15 million customers, which raises privacy concerns [1][4]. Company Acquisition Details - The acquisition includes 23andMe's Personal Genome Service, Total Health and Research Services, and its biobank [1]. - The deal is expected to close in the third quarter of 2025, pending bankruptcy court and regulatory approvals [2]. Privacy and Compliance - Regeneron has committed to adhering to 23andMe's consumer-privacy rules and will collaborate with a court-appointed ombudsman to ensure compliance [3]. - The company aims to protect the dataset with high standards of data privacy and security [3]. Background on 23andMe - 23andMe was once valued at over $6 billion after going public in 2021 but has since dropped to a valuation of approximately $50 million due to various issues, including a $30 million settlement related to a data breach affecting nearly 7 million users [4][5]. - The company filed for bankruptcy in March, prompting the California Attorney General to advise customers to delete their data from 23andMe's database [5][8]. Leadership Changes - Anne Wojcicki, co-founder and CEO of 23andMe, stepped down on the day of the bankruptcy filing following internal conflicts with the board [9]. - All seven independent board members of 23andMe resigned in September, indicating significant governance issues within the company [9].

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Core Insights - The House Committee on Energy and Commerce is investigating 23andMe's Chapter 11 bankruptcy filing and is concerned about the potential compromise of sensitive genetic data [1] - Several congressmen have requested information from 23andMe regarding its data and privacy practices, highlighting ongoing concerns about the company's data security commitments [2][4] - 23andMe, which gained popularity with its at-home DNA testing kits, has faced challenges in generating recurring revenue and establishing a profitable research and therapeutics business, leading to its bankruptcy filing [3] Company Overview - 23andMe was once valued at a peak of $6 billion but has struggled financially, resulting in its assets, including a vast genetic database, being put up for sale following its bankruptcy filing in March [3] - The company has not yet responded to inquiries regarding its data security practices, raising further concerns among lawmakers [4]

Core Points - The US Federal Trade Commission (FTC) has warned 23andMe to protect users' personal information amid its bankruptcy proceedings [1][3] - 23andMe, which offers genetic testing services, filed for bankruptcy and is seeking a buyer after experiencing a significant data breach [2][5] - The FTC emphasized that any sale or transfer of personal information during bankruptcy must adhere to the company's privacy commitments [3][4] Company Overview - 23andMe, a Silicon Valley-based company, went public in 2021 and claims to have 15 million customers [5] - The company has faced declining sales as interest in genetic testing waned and suffered a data breach affecting 6.9 million accounts [5][7] - In response to financial difficulties, 23andMe laid off 40% of its workforce, approximately 200 employees, and suspended research programs [5] Data Breach Details - The data breach compromised sensitive information, including names, sex, birth year, location, photos, health information, and genetic ancestry results [7] - 23andMe has agreed to pay around $37.5 million to settle claims related to the 2023 data breach [5]

Core Viewpoint - 23andMe has filed for Chapter 11 bankruptcy but intends to continue operations while restructuring its finances and has secured $35 million in financing for this process [3][4]. Company Overview - Founded in 2006, 23andMe has sold over 12 million DNA testing kits and has notable users such as Oprah Winfrey and Warren Buffett [3]. - The company has faced financial difficulties since 2021, including a significant workforce reduction of 40% in 2024 and the resignation of all independent directors [6]. Data Privacy Concerns - The bankruptcy filing has raised concerns about the handling of customer data, particularly genetic information, during the restructuring process [4][7]. - 23andMe's privacy policies indicate that personal information may be accessed, sold, or transferred during bankruptcy proceedings [8]. - A data breach in 2023 exposed personal information of 6.9 million users, although no genetic data was compromised [5]. Legal and Regulatory Context - Genetic information is treated similarly to personal information under privacy laws, with varying protections depending on the jurisdiction [10][11][12]. - In the U.S., there is a lack of a unified legal framework for consumer privacy, complicating the situation for 23andMe customers [12][13]. Future Outlook - 23andMe may successfully emerge from its restructuring, similar to other companies that have filed for Chapter 11 bankruptcy [9]. - The company could potentially expand licensing agreements with pharmaceutical firms to utilize customer data for research purposes [9]. Consumer Guidance - Customers are advised to consider deleting their accounts and withdrawing consent for the use of their data due to uncertainties surrounding the company's future [15][16]. - Legal experts emphasize the need for clearer regulations to protect consumer privacy, especially concerning genetic data [17].

Core Viewpoint - The announcement of 23andMe filing for bankruptcy and selling its genetic genealogy database has raised privacy concerns among its customers, prompting legal alerts regarding data deletion [1][2]. Company Overview - 23andMe, founded in 2006 by Anne Wojcicki, was the first to market direct-to-consumer genetic testing in North America, aiming to provide consumers with health information directly [6]. - The company initially thrived by capitalizing on the growing interest in genealogy and health data, but faced significant challenges, including a major data breach in 2023 that compromised the personal information of approximately 5.5 million users [12][13]. Industry Context - The consumer genetic testing industry has seen a decline in sales due to privacy concerns and market saturation, with a notable drop in demand for genetic genealogy kits over the past five years [9]. - Law enforcement's use of genetic genealogy databases has heightened consumer awareness of potential third-party data usage, leading to increased scrutiny and calls for regulatory measures [10][11]. Financial and Corporate Developments - 23andMe has expanded its operations by acquiring health services and pharmaceutical companies, but its financial stability has been jeopardized by recent events, including the bankruptcy filing [12]. - Potential buyers for 23andMe's database include large pharmaceutical companies, international buyers, and tech firms like Google and Ancestry.com, which could significantly reshape the landscape of genetic data ownership [15][16]. Privacy and Regulatory Issues - The sale of genetic databases raises concerns about changing privacy provisions, with customers uncertain about the long-term protection of their data [18]. - The rapid growth of the direct-to-consumer genetics industry has outpaced regulatory frameworks, leaving consumers vulnerable and anxious about their personal data [19].

Company Overview - Proactive is a financial news publisher that provides fast, accessible, informative, and actionable business and finance news content to a global investment audience [2] - The company has a team of experienced and qualified news journalists who produce independent content [2] Market Focus - Proactive specializes in medium and small-cap markets while also covering blue-chip companies, commodities, and broader investment stories [3] - The news team delivers insights across various sectors including biotech and pharma, mining and natural resources, battery metals, oil and gas, crypto, and emerging digital and EV technologies [3] Technology Adoption - Proactive is recognized for its forward-looking approach and enthusiastic adoption of technology to enhance workflows [4] - The company utilizes automation and software tools, including generative AI, while ensuring that all content is edited and authored by humans [5]