Drugmaker Regeneron Pharmaceuticals will buy genetic testing firm 23andMe for $256 million through a bankruptcy auction, the companies said Monday.

Regeneron said it will comply with 23andMe’s privacy policies and applicable laws with respect to the use of customer data and that it is ready to detail its intended use of the data to a court-appointed overseer.

The bankruptcy proceedings, filed in March, had drawn scrutiny from lawmakers who warned that millions of customers’ genetic data could be sold to unscrupulous buyers.