US court rejects FTC order on Illumina’s purchase of Grail
© Reuters. Illumina office building in San Diego, California, USA, October 20, 2023. REUTERS/Mike Blake/File Photo
Diane Bartz, Mike Scarcella
(Reuters) – A U.S. appeals court on Friday ruled that the U.S. Federal Trade Commission (FTC) ruled against Illumina (Nasdaq:)’s acquisition of its former subsidiary, cancer diagnostic test maker Grail, saying the agency erred in antitrust law. It was dismissed as applying the standard. example.
A New Orleans-based panel of the U.S. Court of Appeals for the Fifth Circuit ordered a review of Illumina’s deal in a 34-page order that was a setback for the FTC.
The three-judge panel said the commission improperly applied Illumina to a higher standard under U.S. antitrust law when evaluating the company’s defenses against the acquisition.
Representatives for the FTC and Illumina did not immediately respond to requests for comment Friday.
San Diego-based Illumina filed an appeal in June after the FTC required it to divest Grail, which Illumina said the agency denied it due process.
Grail, valued at $7.1 billion following its deal with Illumina, is working to bring to market a powerful test that can diagnose multiple types of cancer with a single blood test, known as a liquid biopsy.
The two companies have been fighting antitrust enforcers in the U.S. and Europe for more than two years.
The FTC is concerned that Illumina, a provider of DNA sequencing of tumors and cancer cells that helps match patients with the best treatment options, may raise prices or refuse to sell to Grail’s competitors.
The agency filed a complaint in March 2021 aimed at stopping trading, but lost before an FTC administrative law judge. The case was handed back to the FTC Commissioner, who then reopened the case. Illumina took it to the appeals court.
Despite its fight with the FTC and similar fights in Europe, Illumina closed its Grail acquisition in mid-2021.
Europe has since proposed steps to cancel Illumina’s acquisition of Grail. Illumina argues that the EU competition enforcer has no jurisdiction because it does not do business in Europe.
Illumina has promised to continue selling its DNA sequencing services to other companies. It signed contracts to supply Grail’s competitors and offered not to raise prices.
