The US bankruptcy court this week cleared the way for the sale of genetics testing firm 23andMe to a nonprofit group controlled by the company’s former CEO Anne Wojcicki for $305 million, the company announced.

TTAM Research Institute, or TTAM, a California nonprofit that will buy 23andMe, plans to continue the company’s privacy policies for customers and add additional data security features, 23andMe said in a statement.

The sale to TTAM replaces an earlier $256 million offer that was announced in May by drug company Regeneron Pharmaceuticals. Regeneron said at the time the genetic data could be used to advance drug development.

Last month, 27 states and the District of Columbia filed a lawsuit over the sale, seeking to block the transfer of customers’ genetic information without consent.

Wojcicki, 23andMe’s co-founder and former chief executive, said TTAM would be “operating for the public good.”

“I am thrilled that TTAM will be able to build on the mission of 23andMe to help people access, understand and benefit from the human genome,” Wojcicki said in a statement. “As a nonprofit, TTAM will be a champion of improving our knowledge of DNA – the code of life – for the public good, creating a resource to advance human health globally.”

“Core to my beliefs is that individuals should be empowered to have choice and transparency with respect to their genetic data and have the opportunity to continue to learn about their ancestry and health risks as they wish. The future of healthcare belongs to all of us,” Wojcicki added.

The firm’s bankruptcy filing in March this year elicited concerns over the privacy of genetic data for the company’s about 15 million customers.

The deal for 23andMe also includes Lemonaid Health, a telemedicine platform 23andMe purchased in 2021 for around $400 million.

The company filed for Chapter 11 bankruptcy in March, saying in a statement it would enter a “court-supervised” sale process. At the time, Wojcicki stepped down as CEO of the company.

The filing came after a series of problems for the company, including a 2023 class-action settlement related to a data breach and a 2024 mass resignation among board of directors members.

Monday’s approval by the U.S. Bankruptcy Court for the Eastern District of Missouri came several weeks after the 23andMe and TTAM submitted the transaction agreement. The deal is expected to close in the coming weeks, the company said in a statement.

Customers will be notified of the sale by email before the acquisition is completed, the company added.