Anne Wojcicki, co-founder and former CEO of 23andMe, has bid to buy back the genetic testing platform, which was pronounced bankrupt last March.
After users of the platform voiced concerns about their personal data being sold to another company, Wojcicki’s nonprofit TTAM Research Institute has put in an offer to outbid pharmaceutical company Regeneron in a bankruptcy auction for a huge $305 million.
This $305 million will secure “substantially all” of 23andMe’s assets. At the end of the final round of bidding, TTAM was selected as the winning bidder and Regeneron was selected as the backup bidder.
23andMe’s Fall From Grace
Once known as one of the biggest genetics testing companies in the world, 23andMe announced it had gone into bankruptcy just last March.
What this meant was that the company’s assets, which included over 15 million people’s personal data, could be sold to the highest bidder in order to reclaim some of its funds.
This data not only contained information about ancestry, but also health risks and genetic makeup too. This sparked widespread concern about who might be able to have access to the data, and what they might be able to use it for.
But this wasn’t the first time that 23andMe were criticised for their use of customer data. Back in 2023, the company suffered a data breach that exposed the genetic, health and identity information of 7 million people, including 150,000 people in the UK. This caused the company to be fined £2.3 million.
Wojcicki Steps In
23andMe co-founder Anne Wojcicki’s bid is just her latest attempt to buy back the company. After initially trying to take the company private for just 40 cents per share (an option which was rejected by the board), the company officially filed for Chapter 11 bankruptcy.
Since then, her nonprofit TTAM (the same initials as 23andMe), has bid to buy back the company’s assets for $305 million. Regeneron, a US biotech firm, had offered $256 million to buy the company, and is still in place as a reserve bidder if the court decline TTAM’s offer.
What TTAM Has Promised If The Bid Is Accepted
To help reduce customer concerns, TTAM has promised to protect customer data by:
- Honouring 23andMe’s policies that allow people to delete their account and data and opt-out of research.
- Send out emails to all customers at least two business days before closing with details on TTAM’s role, TTAM’s commitment to privacy choices, and instructions on how to delete data or opt out of research.
- Agreeing to not sell or transfer genetic data if the company goes bankrupt again or changes hands.
- Establishing a Consumer Privacy Advisory Board.
- Report any privacy changes more transparently.
- Offer customers two years of free Experian identity theft monitoring.
- Continue allowing de-identified data to be used for scientific and biomedical research but refuse donations from people or companies in specified countries.
Most importantly, TTAM has committed to acting as if it were a for-profit company in terms of its privacy laws, despite the fact that it operates as a non-profit.
Why People Are Still Worried
As some privacy lawyers have pointed out, even though TTAM is committed to acting as a for-profit, it is still a non-profit, which could cause a legal grey area.
Others have commented that Wojcicki was CEO during the 2023 data breach, showing that she isn’t the safe pair of hands she pretends to be.
Ultimately, due to the fact that the data being used is highly sensitive, many are concerned that Wojcicki is simply going to make the same mistakes as before.
Can Customers Delete Their 23andMe DNA Data?
Yes, but it’s not that simple. Whilst users can delete their account and data, much of it has already been processed and used in research studies that can’t be retracted.
If you want to delete your data, according to Vonny Gamot, Head of EMEA at McAfee, here’s what you should do:
To Delete Your Account and Genetic Data:
- Log in to your 23andMe account.
- Go to Settings.
- Scroll down to 23andMe Data and click View.
- (Optional) Download your data if you want to keep a copy.
- Scroll to the Delete Data section.
- Click Permanently Delete Data.
- Confirm via the email link you’ll receive.
To Destroy Your Saliva Sample:
- Go to Settings.
- Navigate to Preferences.
- Select the option to destroy your stored biological sample.
To Revoke Research Consent:
- Go to Settings.
- Navigate to Research and Product Consents.
- Withdraw your consent for data sharing.
What Next For 23andMe?
If the court accepts TTAM’s bid, the sale will likely go through quickly. If not, it might be bought by Regeneron, which comes with its own set of privacy concerns.
As the court decides which company is going to be able to have ownership over one of the world’s most sensitive datasets, we wait to see how Wojcicki will respond and ultimately, if she is able to re-write her wrongs.
