23andMe, the genetic testing company that was once valued at $6 billion but filed for bankruptcy in March, will be bought by Regeneron Pharmaceuticals, a biotechnology company that has used DNA research to develop new drugs.

Regeneron said it had been named the successful bidder in a bankruptcy auction and would pay $256 million for “substantially all of the assets” of 23andMe, which will continue to offer consumer DNA testing services.

23andMe filed for bankruptcy as it struggled to generate recurring revenue and faced a mountain of concerns over the security of the sensitive genetic information it held.

If approved by a bankruptcy court and by regulators, the sale was expected to close in the third quarter of 2025, Regeneron said. The deal would give the company control over the genetic information of millions of 23andMe customers, less than two years after a data breach heightened security and privacy concerns.

Regeneron said it would comply with 23andMe’s consumer privacy policies and with laws that govern the treatment of customer data. Regeneron added that it was also prepared to allow a court-appointed ombudsman and other interested parties to review its use of customer data, privacy programs and security controls.

“Regeneron will not use any personal data in a manner inconsistent with the purposes for which it was shared with 23andMe,” Regeneron said in a statement. “So all those preferences would hold steady, and personal data will not be used for research without consent.”