23andMe Expects Multiple Bids for Genetic Data, Lawyer Says

(Bloomberg) — Multiple bidders are likely to submit offers for the DNA data bank and other assets of bankrupt genetic-testing firm 23andMe, according to a lawyer for the company.

Although 23andMe was unable to land a lead bidder willing to make a binding offer, attorney Christopher Hopkins said during a Tuesday court hearing that the firm expects to go forward with an auction because of the “robust” interest it has received so far. “Our expectation is that we will receive multiple competitive bids by tomorrow’s deadline,” he told US Bankruptcy Judge Brian C. Walsh. 

The company negotiated with potential buyers regarding a binding, opening offer, but failed to do so despite two extensions amid concerns about how customer data would be handled as part of the sale. 

A privacy ombudsman has been named to monitor the process to ensure compliance with privacy policies related to the genetic material submitted by millions of customers. That material, and the genetic data it produced, is 23andMe’s most valuable asset. The company has said any buyer must comply with current privacy protections and federal regulations. 

In the months leading up to March’s bankruptcy filing, 23andMe tried to attract a buyer while struggling to end a class-action lawsuit related to a 2023 data breach that gave hackers access to customer information. The company will try to resolve those claims as part of the bankruptcy.

The case is 23andMe Holding Co., number 25-40976, in the US Bankruptcy Court for the Eastern District of Missouri.

More stories like this are available on bloomberg.com