The court approves the sale of 23andme to the non-profit organization led by co-founder Anne Wojcicki

23Andme, a genetic test company in difficulty that has filed an bankruptcy this year, received another potential rescue buoy.

A bankruptcy judge approved the sale of the company’s assets and commercial operations to a non -profit organization led by the co -founder and former managing director of 23andme, Anne Wojcicki. The non -profit organization, TTAM Research Institute, will pay $ 305 million as part of the agreement which will probably end in the coming weeks.

The financial turmoil of the South San Francisco company has aroused confidentiality problems on what happens to the genetic data of its 13 million customers if it is sold. These concerns prompted 1.9 million users to delete their accounts. Several states, including California, have continued to block the sale of 23andme data without user consent, arguing that customers have a right inherent in their own genetic information. Unlike a password, a person’s genetic data cannot be changed if compromised.

Judge Brian Walsh, of the American bankruptcy court, in the Missouri District of Missouri, in Saint-Louis, said in a notice filed on Friday that “the sale of genetic data by a company is a frightening proposal, and reasonable persons could conclude that it should in no case be authorized.”

But the proposed sale means that Wojcicki would buy a company that she helped to start and lead for years. And it “will improve privacy practices while honoring customers’ rights to delete their accounts and data,” said the judge.

“The hearts of my convictions is that individuals should be allowed to have the choice and transparency with regard to their genetic data and have the possibility of continuing to know more about their ancestors and their health risks as they wish,” Wojcicki said in a press release.

The entrepreneur has tried to pave the way several times in the past. Before 23andme demated the results, the company’s special committee rejected Wojcicki’s proposal to take the private company by acquiring all the actions in circulation of the company. The actions of the company plunged before filing a bankruptcy. Wojcicki left his role as managing director but remained on the board of directors of 23 and 23.

Earlier, the manufacturer of Regeneron Pharmaceuticals medication had to buy 23andme. Then, a bankruptcy judge reopened the tender process to allow an offer of TTAM, which offered a higher price.

Weighing the arguments of the states opposed to the sale, Walsh noted that the declaration of confidentiality of 23andme indicates that the personal information of its users could be sold within the framework of a merger, an acquisition or sale of the company’s assets. Under the agreement, the TTAM would make job offers to 23andm workers and the genetic data would not be disclosed to new parties, according to the court of the court.

Once evaluated at $ 6 billion, 23andme deposited the bankruptcy of chapter 11 in March. Founded in 2006, the company sells DNA test kits that people use to discover their ancestry and their health.

The company had trouble growth for recurring income because people just passed the DNA test once. He also faced confidentiality problems. In 2023, the pirates obtained personal information on approximately 7 million customers. Some of the data consulted included ancestry trees, years of birth and geographic locations, highlighting the risks that support data to private companies.

In an email sent to customers after approval of the sale, 23andme said that the TTAM is committed to respecting the company’s privacy policy and that customers have the right to withdraw from research or delete their accounts.