Illumina plans to sell cancer test maker Grail after recent antitrust ruling
Illumina Inc. said Sunday it will sell its Grail devices after a federal appeals court ruled Friday that its $7.1 billion 2021 acquisition was anticompetitive.
In a statement Sunday, Illumina ILMN said
The company, which makes genetic sequencing products, said it was selling Grail and would not appeal the court’s decision. Last October, European regulators ordered Illumina to sell Grail on antitrust grounds. Illumina, based in Foster City, California, has argued that the European Commission has no jurisdiction over the deal.
“We are committed to quickly divesting Grail in a way that ensures its technology continues to benefit patients,” Illumina CEO Jacob Thaysen said in a statement. “Management and I remain focused on our core business and supporting our customers. I am confident in Illumina’s opportunity and our long-term success.”
Grail performs blood tests to detect early signs of cancer. Illumina said it expects to offload Grail by the end of the second quarter of 2024.
The Wall Street Journal reported Saturday that an appeals court said U.S. regulators were right to challenge the acquisition, but found errors in the Federal Trade Commission’s case and sent it back to the FTC for a retrial.
It’s been a tumultuous few months for Illumina, with its stock nearing a 10-year low in mid-November. After lowering its annual sales forecast last August, a new CEO was appointed in September.
Illumina shares are up 34% over the past month, but are still down 37% year to date.
