May 19 (UPI) -- Regeneron Pharmaceuticals announced Monday it plans to purchase human genetics and biotechnology firm 23andMe from bankruptcy protection in a $256 million deal.
Regeneron acquired the right to purchase the assets of California-based 23andMe after winning a bankruptcy auction, as it looks to expand its footprint in the world of genetics.
The transaction still needs to be approved by the U.S. Bankruptcy Court for the Eastern District of Missouri, as well as other regulators.
In March, 23andMe announced it was seeking Chapter 11 bankruptcy and would begin selling the majority of its assets.
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Service to the company's approximately 15 million customers was expected to continue uninterrupted. Regeneron said Monday that will continue to be the case, with 23andMe operating its consumer genetics business as a wholly-owned subsidiary.
At the time of the bankruptcy announcement, 23andMe said it was aiming to cut its workforce by 40%.
"23andMe is a pioneer in consumer genetics and research, and we are excited for the opportunity to support their important mission and grow their platform and business," Regeneron Senior Vice President Aris Baras said in a statement issued by the company Monday.
"We believe we are uniquely suited to be responsible and effective stewards of 23andMe's future, and we look forward to welcoming their talented team. We assure 23andMe customers that we are committed to protecting the 23andMe dataset with our high standards of data privacy, security and ethical oversight and will advance its full potential to improve human health."
Shares of Tarrytown, N.Y.-based Regeneron were up slightly in pre-market trading but fell after the opening bell. The company's stock was down $7.02 or 1.18% to $587.30 at 10:37 a.m. EDT.
"We believe we can help 23andMe deliver and build upon its mission to help those interested in learning about their own DNA and how to improve their personal health, while furthering Regeneron's efforts to use large-scale genetics research to improve the way society treats and prevents illness overall," Regeneron President and Chief Scientific Officer George Yancopoulos said in the company's statement.
