23andMe Faces New Era as Co-Founder’s Nonprofit Secures Acquisition Post-Bankruptcy
In a significant development for the personal genomics industry, a nonprofit organization controlled by Anne Wojcicki, co-founder and former chief executive of 23andMe, has won the bidding process to acquire the bankrupt genetic testing company. The acquisition, spearheaded by the TTAM Research Institute (reportedly standing for “Twenty-Three And Me”), places Wojcicki back at the helm of the company she helped launch, pending court approval.
This outcome follows 23andMe’s filing for Chapter 11 bankruptcy in March 2025, a stark contrast to its peak valuation of $6 billion. The path to bankruptcy included significant challenges, such as a major cyberattack in 2023, declining consumer interest in at-home DNA test kits, rising operational costs, and internal friction that saw the mass resignation of independent directors and significant workforce layoffs. Wojcicki herself had stepped down as CEO the same day bankruptcy was filed, positioning herself as an independent bidder.
The Bidding War: A $305 Million Offer Prevails
TTAM Research Institute secured the winning bid with a $305 million offer for substantially all of 23andMe’s assets. These assets include the core personal genome service, research services, and the telehealth program Lemonaid Health, which 23andMe acquired in 2021.
The acquisition concludes a competitive auction process overseen by the U.S. Bankruptcy Court for the Eastern District of Missouri. TTAM’s bid successfully surpassed an earlier offer of $256 million from New York-based drug maker Regeneron Pharmaceuticals. According to reports, Regeneron declined to make a higher bid in the final round, clearing the way for Wojcicki’s nonprofit.
A Return and Renewed Mission
For Anne Wojcicki, this acquisition marks a potential “comeback,” allowing her to steer 23andMe’s future. She expressed enthusiasm for the prospect of TTAM Research Institute continuing 23andMe’s founding mission.
“I am thrilled that TTAM Research Institute will be able to continue the mission of 23andMe to help people access, understand and benefit from the human genome,” Wojcicki stated. She emphasized the critical importance of “choice and transparency with respect to their genetic data,” enabling individuals to keep learning about their ancestry and health risks. The move towards a nonprofit structure potentially signals a strategic pivot towards prioritizing research and public health initiatives over solely commercial interests.
Genetic Data Privacy: The Central Challenge
While the acquisition offers a lifeline for 23andMe, it shines a harsh spotlight on the immense trove of customer genetic data the company holds – reportedly from over 11 million to 15 million individuals who provided DNA samples. Experts universally agree that genetic information is uniquely sensitive; it is immutable, irreplaceable if compromised, and holds significant value for various purposes, from personalized advertising to medical research.
The potential sale of this extensive genetic database during bankruptcy proceedings has triggered widespread alarm and legal challenges. Twenty-seven states and the District of Columbia, or a group of 28 state attorneys general depending on the source, have filed a joint lawsuit against 23andMe, seeking to block the sale of customer genetic data without explicit consent.
State officials voiced strong objections to the idea of customers’ deeply personal genetic blueprints being treated merely as assets for sale. As Oregon Attorney General Dan Rayfield put it, “This isn’t just data — it’s your DNA.” New York Attorney General Letitia James echoed the sentiment, stating, “23andMe cannot auction millions of people’s personal genetic information without their consent.”
Adding to the scrutiny, a court-appointed privacy ombudsman has raised concerns about whether 23andMe’s existing privacy policies actually permit the sale of genetic data as part of an acquisition process like this. The impact of recent events, including the bankruptcy filing, on customer trust is evident, with 23andMe’s interim CEO recently informing a House Oversight Committee that 15% of customers had requested their data be deleted since March.
TTAM’s Commitments and the Road Ahead
Addressing these critical privacy concerns, TTAM Research Institute has pledged to comply with 23andMe’s existing privacy policy. Furthermore, TTAM has committed to adopting additional consumer protections, honoring customers’ rights regarding their data (including account deletion and opting out of research), and plans to establish a Consumer Privacy Advisory Board within 90 days of the deal closing to address ongoing concerns.
Despite TTAM’s commitments, the path forward is not without hurdles. The acquisition requires formal approval from the bankruptcy court, with a hearing reportedly scheduled for June 17. Beyond legal and regulatory challenges, TTAM and Wojcicki face the complex task of rebuilding public trust and navigating the ethical landscape of utilizing a vast genetic database under a new structure.
Whether the shift to a nonprofit model can successfully balance research ambitions with robust data privacy, while also achieving financial stability in the competitive biotech market, remains the key question for 23andMe’s future.
