The Company Buying 23andMe Is a Pharmaceutical Giant. Here's How Investors Can Benefit From the Move.
Earlier this year, biotech company 23andMe filed for bankruptcy. The harsh reality was that its business, while enticing to people who wanted to learn about their backgrounds via DNA testing kits, wasn't sustainable and its losses were simply mounting.On May 19, Regeneron Pharmaceuticals (NASDAQ: REGN) announced that it was the successful bidder for substantially all of 23andMe's assets, agreeing to pay $256 million for them. The deal is still needs approval, but is expected to close in the third quarter of this year. Regeneron is a large pharmaceutical company with a market cap of more than $60 billion; its acquisition of 23andMe could unlock some attractive growth opportunities over the long haul.Image source: Getty Images.Continue reading
Earlier this year, biotech company 23andMe filed for bankruptcy. The harsh reality was that its business, while enticing to people who wanted to learn about their backgrounds via DNA testing kits, wasn't sustainable and its losses were simply mounting.
On May 19, Regeneron Pharmaceuticals (NASDAQ: REGN) announced that it was the successful bidder for substantially all of 23andMe's assets, agreeing to pay $256 million for them. The deal is still needs approval, but is expected to close in the third quarter of this year. Regeneron is a large pharmaceutical company with a market cap of more than $60 billion; its acquisition of 23andMe could unlock some attractive growth opportunities over the long haul.
Image source: Getty Images.
