SAN FRANCISCO - In a significant development for the genetic testing industry, a U.S. bankruptcy court has approved the sale of 23andMe to a nonprofit founded by the company's co-founder, Anne Wojcicki. The $305 million deal marks the end of a competitive bidding process and sets the stage for a new chapter in the company's history [1][2].

U.S. Bankruptcy Judge Brian C. Walsh greenlit the sale on Friday, allowing Wojcicki's TTAM Research Institute to purchase 'substantially all' of 23andMe's assets [1]. The transaction, expected to close in the coming weeks, comes more than three months after 23andMe filed for Chapter 11 bankruptcy [2].

'I am thrilled that TTAM will be able to build on the mission of 23andMe to help people access, understand and benefit from the human genome,' Wojcicki said in a statement on Monday. She added, 'The future of health care belongs to all of us' [1][2].

The court's decision concludes a monthslong bidding war between TTAM and Regeneron Pharmaceuticals. Regeneron had previously agreed to buy most of 23andMe's assets for $256 million in May, but Wojcicki's nonprofit later topped that offer [1][4].

Under the approved deal, TTAM will acquire 23andMe's signature 'Personal Genome Service' provided through the company's saliva-based DNA testing kits. The nonprofit will also take over the company's research operations and its Lemonaid Health subsidiary, a telehealth services provider that 23andMe acquired in 2021 [4].

However, the sale has not been without controversy. Several states, including California, have raised objections to the transaction. California Attorney General Rob Bonta's office stated that the terms of the sale 'do not comply' with the state's Genetic Information Privacy Act (GIPA) [6].

'We believe that 23andMe's proposed bankruptcy sale of vast amounts of genetic data and biological samples to TTAM — or potentially other purchasers — does not comply with GIPA and are disappointed in the court green lighting the sale despite our objection,' a spokesperson for Bonta said [6].

The GIPA requires companies to obtain opt-in consent from customers before selling their genetic information to third parties. This raises questions about the future handling of the extensive genetic data held by 23andMe [6].

Despite these concerns, TTAM has committed to honoring existing privacy policies. As the deal moves forward, industry observers will be closely watching how Wojcicki's nonprofit navigates these privacy issues while pursuing its mission to advance genetic research and personalized healthcare [1][2].

The acquisition by TTAM represents a full-circle moment for Wojcicki, who co-founded 23andMe nearly two decades ago. As the company transitions under new ownership, it remains to be seen how this change will impact the broader landscape of genetic testing and data privacy in the healthcare sector [1][2][4].