Source: CNBC
SEC Moves Amid 23andMe’s Delisting Announcement
23andMe, the once-prominent genetic testing company, recently announced its intention to voluntarily delist from the Nasdaq and deregister with the U.S. Securities and Exchange Commission (SEC). This decision follows a troubling period for the company, including a Chapter 11 bankruptcy filing earlier this year.
On May 27, 2025, 23andMe made this significant announcement in a release, marking a pivotal moment in the company’s history. Earlier this month, Regeneron Pharmaceuticals revealed it would acquire “substantially all” of 23andMe’s assets for $256 million, leading to the company’s decision to initiate the delisting process.
Background of 23andMe’s Financial Troubles
Founded on the popularization of at-home DNA testing kits, 23andMe soared to prominence and, at its height, was valued at around $6 billion. However, the journey took a sharp turn after 23andMe went public in 2021 through a merger with a special purpose acquisition company (SPAC). Since then, the company struggled to generate consistent revenue and sustain viable research or therapeutics businesses.
Amid these challenges, 23andMe resorted to Chapter 11 bankruptcy protection in March 2025, where its assets were put up for auction. Following this process, Regeneron emerged as the leading bidder, which set the stage for the company’s current predicament.
Details of the SEC Filing and Delisting Process
According to the announcement, 23andMe will file a Form 25 Notification of Delisting with the SEC on or around June 6, meaning its stock will no longer be listed on the Nasdaq. Despite the exchange’s previous indication that a Form 25 would be filed in March, 23andMe opted for a voluntary filing due to the Nasdaq’s delay in taking action.
This delisting marks a significant change for the company and further underscores its ongoing struggles. The deal with Regeneron is still pending approval from the U.S. Bankruptcy Court for the Eastern District of Missouri, with expectations for the transaction to close in the third quarter of 2025, assuming regulatory approval is granted.
What’s Next for 23andMe?
The fallout from 23andMe’s decision is significant for investors and stakeholders alike. As the SEC prepares to process the delisting, questions linger about the future directions of both 23andMe and Regeneron. While the merger could potentially revitalize 23andMe’s capabilities, it remains to be seen how this will affect its standing in the biotechnology field.
23andMe carved out a niche in providing insights into genetic health and ancestry, making its decline a noteworthy case in the evolving landscape of personal genomics. The company grapples with challenges that many businesses face during turbulent financial times.
Final Insights on SEC Interactions and Company Futures
As the SEC continues to navigate the complexities of corporate regulations, the delisting of 23andMe serves as an example of how swiftly fortunes can change in the biotechnology sector. Investors, analysts, and consumers will be watching closely to see how the acquisition by Regeneron unfolds.
Questions & Answers
Why is 23andMe delisting from the Nasdaq?
23andMe is voluntarily delisting after filing for Chapter 11 bankruptcy protection and being acquired by Regeneron Pharmaceuticals.
What assets is Regeneron acquiring from 23andMe?
Regeneron will acquire “substantially all” of 23andMe’s assets for $256 million.
When will the SEC process the delisting?
The company plans to file a Form 25 Notification of Delisting with the SEC on or around June 6, 2025.
How did 23andMe’s valuation change over time?
Once valued at approximately $6 billion, 23andMe struggled following its public offering in 2021 and faced significant financial challenges.
What is the expected timeline for Regeneron’s acquisition?
The acquisition is expected to close in the third quarter of 2025, pending approval from the relevant bankruptcy court.