Sales genetic testing companies raise concerns about the privacy of 23andme 15 million customers.

Regeneron Pharmaceuticals has acquired 23andMe, a once-$6 billion genetic testing company, through a bankruptcy auction, once-$6 billion.

Regeneron said in a statement Monday that the statement aims to enhance its capabilities in genome-driven drug discovery by using customer DNA profiles, collected through its popular direct consumer saliva testing toolkit.

It will prioritize ethical use of customer DNA data, it added.

However, the deal brings people back on data privacy issues, especially given the recent challenges 23AndMe faces. Founded in 2006, 23andMe collects genetic information from approximately 15 million people.

The genomics company, once a pioneer in Ancestry DNA testing, faces the need for its core services and the reputational damage of a data breach in 2023 that exposed sensitive genetic and personal information from millions of users.

The hackers and subsequent bankruptcy filings reviewed lawmakers, warning that genetic data from millions of customers could be sold to unethical buyers.

The company wrote letters after its bankruptcy filing in March and several congressional committees and federal agencies, including the Senate Health, Education, Labor and Pension Commission, as well as the Federal Trade Commission, expressing that the company's data could end up falling into the hands of malicious parties.

The House Subcommittee on Oversight and Accountability investigated the matter.

Regeneron said that recognizing the strict scrutiny, it will uphold 23AndMe's existing privacy policy and comply with all applicable data protection laws.

The drugmaker is also committed to working transparently with a court-appointed independent supervisor, which will assess the impact of the deal on consumer privacy and is expected to file a report to the court by June 10.

The court plans to consider approving the deal on June 17.

Bernstein analyst William Pickering told the news agency that investment in rebirth of genomics is “are good strategic significance”, but it may take a decade or more to see the rewards.

Pickering added: “Given Regeneron’s history, we also believe that 23AndMe customers have a good grasp of their privacy perspective.”

As part of the agreement, Regeneron will acquire all units of 23AndMe, but the company's on-demand telehealth service Lemonade Health is closing.

After the transaction, it is expected to be completed in the third quarter, with 23AndMe operating as a wholly owned unit of Regeneron.

Despite the acquisition, Regeneron's stock fell 0.6% as of 12 p.m., GMT 16:00), although it has increased by 2.86% over the past five days.