• A bankruptcy judge approved the sale of 23andMe to nonprofit TTAM Research Institute for $305 million.
• The sale alleviates concerns over the company's user data being transferred to third parties after its bankruptcy.
• Anxiety regarding genetic data security led to 1.9 million users deleting their accounts prior to the sale.
• Co-founder Anne Wojcicki aims to enhance privacy measures and benefit public health with the acquisition.
• Opposition from several states over the sale underscores rising fears related to data privacy in genetic testing.

A bankruptcy judge has approved the sale of genetics testing firm 23andMe to the nonprofit TTAM Research Institute, led by co-founder Anne Wojcicki, for $305 million. This decision comes amid bankruptcy proceedings and public concern over the security of genetic data belonging to the company's approximately 15 million customers, with previous bids threatening transfer of sensitive information to commercial entities. The sale replaces an earlier bid of $256 million from Regeneron Pharmaceuticals, which was embroiled in controversy over potential data misuse, according to NPR, ABC News, and LA Times.

The sale, approved by Judge Brian Walsh of the U.S. Bankruptcy Court, comes after concerns were raised about the nature and security of genetic data, which cannot simply be changed like other types of personal information. The closure of the deal is expected soon, with TTAM pledging to uphold 23andMe's data privacy policies and potentially adding new security measures to protect customer information. Wojcicki has expressed her commitment to improve transparency and data handling, stating her ambition for TTAM to advance public health through its operations, according to ABC News, NPR, and LA Times.

The financial troubles of 23andMe led to the deletion of accounts by about 1.9 million users amid fears of data compromise, particularly following a significant data breach in 2023 that affected millions. Critics have argued that genetic data is fundamentally distinct from other types of property and should not be treated as an asset in bankruptcy proceedings. The judge acknowledged the gravity of the sale while indicating that existing privacy promises would be honored under the new ownership, according to NPR, ABC News, and LA Times.

Wojcicki, who has navigated challenges in her leadership of 23andMe, highlighted the importance of maintaining customer choice regarding their genetic information. Post-acquisition, the nonprofit intends to emphasize research and health benefits without compromising data privacy. The ongoing push from several states to block the sale reinforces the escalating dialogue about the ethics of data ownership and privacy in consumer genetics, according to ABC News, NPR, and LA Times.