Aggregated News

Two closely watched companies that offer consumers information about their genes have received licenses that will allow them to continue to do business in California, a state official said Tuesday.

The licenses, granted to Navigenics and 23andMe, should help defuse a controversy that began in June when the California Department of Public Health sent “cease and desist” letters to the two companies and 11 others that offer genetic testing directly to consumers.

The letters said that companies could not solicit customers from California without receiving a license from the state to operate as a laboratory. And they said that doctors had to be involved in ordering genetic tests.

The letters were the most recent sign of concern that regulators at both the state and federal level are becoming increasingly concerned about the accuracy and validity of tests being sold through the Internet.

But the state’s action also sparked concern that overregulation could stifle a promising new industry. The media coverage of the action seemed to catch the state off-guard. Both sides appeared eager to resolve the issue.

“I think we’re...