Founder of 23andMe buys back company out of bankruptcy auction

Anne Wojcicki has been declared the winner of a bankruptcy auction for 23andMe, the genetics testing start-up she founded, prevailing over a rival bid from Regeneron Pharmaceuticals.

TTAM Research Institute, a non-profit public benefit company also founded by Wojcicki, won the auction with a $305 million bid for the 23andMe assets, which will not come with any company liabilities attached.

23andMe filed for bankruptcy in March after rejecting several go-private offers from Wojcicki in recent years. Regeneron was declared the winning bidder in May after the company accepted a $256 million bid in a previous auction.

TTAM then accused the debtor and its advisers of prematurely shutting down the May auction before it could put in a higher bid. The company in court filings said it rejected higher bids from TTAM after it could not confirm its ability to raise necessary financing.

TTAM later said it had obtained backing from a “Fortune 500 company with a current market capitalization of more than $400 billion and $17 billion of cash on hand.”

The federal bankruptcy court in Missouri held additional rounds of bidding on Friday morning to allow TTAM to formally submit a higher bid.

Regeneron had the opportunity to see the “best and final” TTAM bid and make a higher offer, but it declined. It is set to receive a $10 million termination fee, according to court filings.

TTAM’s winning offer requires judicial approval, and a court hearing to approve the bid is set for next week.

Several US states have filed objections or lawsuits with the court expressing concerns about the transfer of customers’ genetic data to a new company, though those may now be moot because of Wojcicki’s continued involvement.

An expert hired by the court to review data privacy concerns over a sale of 23andMe submitted a report on Wednesday that noted Wojcicki had been chief executive when a 2023 data breach compromised 7 million customer accounts. Litigation over the breach continues, although that liability remains with the bankruptcy estate to be paid off with the proceeds from the winning bid.

Wojcicki was once married to Google co-founder Sergey Brin. 23andMe went public in 2021 through a merger with a blank cheque vehicle sponsored by Richard Branson, quickly reaching a market cap of nearly $6 billion.

The company has been plagued by years of falling revenue as it was unable to grow beyond its genetic testing business, in which customers sent saliva samples in to be analyzed for medical conditions and family genealogy.

Wojcicki had bid 40 cents a share to acquire the company prior to the bankruptcy filing.

Shares of 23andMe, which now trade over the counter, have rocketed to $5.49 on the belief the company will stage a recovery after settling the litigation.