23andMe to face legal showdown over DNA data sale

Genetic testing firm 23andMe is caught in a legal and ethical firestorm as it faces pushback from more than two dozen US states over the proposed sale of its vast trove of customer DNA data.

The controversy erupted as Regeneron Pharmaceuticals moved to acquire the bankrupt company for $256 million, a deal now disrupted by a dramatic last-minute bid from 23andMe co-founder Anne Wojcicki.

Filing under a newly established nonprofit, Wojcicki offered $305 million through the TTAM Research Institute, prompting the bankruptcy court to reopen the auction.

The competing bids have reignited debate about the ownership and privacy of genetic data.

On 10 June, a coalition of 27 states and the District of Columbia filed a lawsuit seeking to block the sale of 23andMe’s data assets without explicit customer consent.

The legal arguement against the deal is essentially that biological samples, health traits, and DNA profiles are too sensitive to be treated like commercial property.