It has strangely become commonplace for individuals to seal their genetic material in a vial and send it off to an unfamiliar location just to discover what proportion of their ancestry belongs to specific ethnic groups.
For viewers familiar with crime dramas, this scenario seems like a setup for a possible frame-up; however, to some, it appears as an intriguing experiment.
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Even though it initially served to warn individuals about genetic inclinations with the aim of minimizing health hazards or conducting paternity assessments, DNA testing has evolved into an engaging method for humans to satisfy their interest in tracing their ancestry.
Connected: Large health organization declares Chapter 11 bankruptcy
Over the past ten years, genetic testing firms have gained prominence because they offer clients comprehensive information regarding their ancestral origins and ethnic backgrounds, often aiding individuals in finding distant family members via common genealogical links.
Although it might seem appealing, sending your saliva or blood samples to a firm for analysis instead of a conventional medical laboratory poses considerable dangers since this organization then gains access to your private data.
After declaring Chapter 11 bankruptcy, 23andMe gets a new owner.
23andMe ( ME ) The company filed for Chapter 11 bankruptcy in March at the Missouri federal court, grappling with various issues such as declining revenues from reduced demand for DNA test kits and a significant data breach.
During this chaotic period, 23andMe's co-founder and CEO, Anne Wojcicki, stepped down from her executive position right away; however, she continued to serve on the company’s board.
In the process of submitting their documents, 23andMe obtained a financial pledge worth $35 million. At this point, they reported having between $100 million and $500 million in total estimated assets and debts. This funding enabled them to keep running their business while searching for a potential buyer.
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Following several months of ambiguity, 23andMe has reached an accord with the biotechnology firm Regeneron Pharmaceuticals. ( REGN ) will purchase 23andMe for $256 million following a successful bid at a bankruptcy court auction.
Upon finalizing the agreement, Regeneron will acquire ownership of all company resources, encompassing the Personal Genome Service along with the Total Health and Research Services divisions, enabling 23andMe to keep offering its genetic testing solutions.
The deal does not encompass Lemonaid Health's subsidiary, which includes 23andMe's telehealth service, pharmacy fulfillment operations, as well as their laboratory and testing request platforms.
Regeneron has similarly committed to ensuring the protection of all customer information and cooperating with a court-designated reviewer to examine security measures, thereby addressing the worries of millions of users.
"We are delighted to have finalized an agreement that enhances the value of our company and ensures the ongoing mission of 23andMe continues, all while safeguarding crucial aspects such as customer privacy, options, and permissions concerning their genetic information," stated Mark Jensen, Chairman and member of the Special Committee of the Board of Directors at 23andMe. announcement .
The new proprietor of 23andMe alleviates clients' worries about privacy.
Privacy issues emerged following a significant security breach experienced by 23andMe in 2023. A cyber attacker attempted to auction off personal details belonging to approximately 7 million individuals on the dark web, thereby exposing this sensitive information to potential widespread disclosure.
Initially, 23andMe tackled the hacking issue by sending out emails to clients, explaining that this unpleasant incident was not because of inadequate security provided by the firm, but instead resulted from users neglecting to change their passwords.
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This blame game sparked numerous class-action lawsuits from 23andMe customers due to inadequate security protocols. This conflict culminated in a $30 million settlement along with a complimentary three-year subscription to the Privacy & Medical Shield + Genetic Monitoring program for all involved parties.
It is anticipated that the acquisition will conclude during the third quarter of fiscal year 2025. Nonetheless, 23andMe users might continue feeling anxious regarding the security of their personal information up until the transaction is completely closed.
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