23andMe's journey from DNA testing pioneer to bankruptcy sale

(Reuters) -Drugmaker Regeneron Pharmaceuticals is acquiring majority assets of bankrupt genetic testing firm 23andMe Holding for $256 million.

The once-sizzling DNA-testing startup filed for bankruptcy in March, hit by faltering demand for its ancestry testing kits as it struggled to contain the reputational damage from a widespread data breach.

Presented below is a sequence of events outlining the journey of the San Francisco-based firm, once considered a pioneer in the DNA-testing space:

2006: Anne Wojcicki, Linda Avey and Paul Cusenza come together as co-founders of 23andMe. A year later, the company launches its first direct-to-consumer genetic testing kit, which provides more than 200 health and trait reports as well as genetic ancestry information.

2008: Time magazine labels 23andMe's saliva-based genetic testing kit the "Invention of the Year."

2013: The U.S. Food and Drug Administration issues a warning letter to 23andMe to stop selling its genetic tests due to concerns that it failed to provide any indication that it had analytically or clinically validated the test kits for its intended uses.

2015: After two years of working with regulators — including meeting some of the FDA's reporting requirements — the company is able to market its DNA test kit directly to individuals in the United States.

2016: 23andMe makes it to the CNBC Disruptor 50 list of companies.

2017: Oprah Winfrey names the 23andMe genetic testing kit one of her "favorite things" of the year.

2018: 23andMe signs a four-year collaboration agreement with British drugmaker GSK, focusing on research and development of new medicines using human genetics.

2019: American singer Lizzo dresses up as the company's DNA test kit for Halloween, and 23andMe is featured in actor Eddie Murphy's sketch on Saturday Night Live.

Several media outlets report that the company is seeing an almost 54% decline in sales of its genetic testing kits.

2021: 23andMe goes public after merging with billionaire Richard Branson's SPAC, notching up a $3.5 billion valuation. Its market capitalization nears $6 billion later that year and the company spends $400 million to buy telehealth firm Lemonaid Health.

2023: 23andMe notifies customers of a data breach in its "DNA Relatives" feature that allowed them to compare ancestry information with users worldwide. It is later revealed that hackers stole ancestry data on 6.9 million users.

April 2024: Co-founder and CEO Anne Wojcicki considers making an offer to take the company private.

July 2024: Wojcicki makes her first non-binding proposal to acquire all of the company's outstanding shares for 40 cents per share.

August 2024: 23andMe's board rejects Wojcicki's take-private offer, calling it "insufficient."

Lemonaid Health begins to offer branded and compounded versions of Novo Nordisk's popular weight-loss drug Wegovy.

September 2024: 23andMe agrees to pay $30 million to settle a lawsuit related to the data breach. Nearly all of the independent directors resign from the company's board after not receiving a satisfactory offer from CEO Wojcicki.

November 2024: The firm cuts about 40%, or 200 employees, from its workforce and discontinues the development of all its therapies as part of a restructuring program. 23andMe also commences a strategic alternatives process for all in-house therapeutic programs.

January 2025: 23andMe reports total revenue of $60.3 million in the third quarter of its fiscal year 2025, including $19.3 million from non-recurring research services under its deal with GSK. As of December 31, 2024, the company reports cash and cash equivalents of $79.4 million.

March 2025: A special committee of 23andMe's board unanimously rejects CEO Wojcicki's latest proposal to buy the company for 41 cents per share.

The firm files for bankruptcy later in the month, and Wojcicki resigns as CEO to participate as an independent bidder during the bankruptcy process.

April 2025: A U.S. House committee asks 23andMe's co-founder to testify as it launched an investigation into the risk of genetic data being transferred to potential buyers amid bankruptcy proceedings.

April 22, 2025: According to a court filing by national security agencies, 23andMe may face opposition from the U.S. government if it tries to sell itself to a foreign buyer.

May 2025: Drugmaker Regeneron Pharmaceuticals says it will buy genetic testing firm23andMe Holding for $256 million through a bankruptcy auction.

Regeneron to acquire all units of 23andMe, except Lemonaid Health, which the genetic testing firm plans to wind down.

(Reporting by Sneha S K and Siddhi Mahatole in Bengaluru; Editing by Arpan Varghese, Alan Barona and Tasim Zahid)