In a recent development, Illumina Inc. has announced its decision to sell its subsidiary, Grail, following a federal appeals court ruling that deemed the $7.1 billion acquisition in 2021 anticompetitive. Grail specializes in producing a blood test designed to detect early signs of cancer. Illumina, known for its gene-sequencing products, expressed its commitment to a swift divestiture of Grail, emphasizing the continued benefits of Grail’s technology for patients.
Despite previously contesting the European regulators’ order to divest Grail on antitrust grounds, Illumina has opted not to appeal the recent court decision. Illumina’s CEO, Jacob Thaysen, stated that the focus remains on the core business and supporting customers, expressing confidence in Illumina’s long-term success. The company anticipates completing the Grail divestiture by the end of the second quarter of 2024. The Wall Street Journal reported that the appeals court acknowledged the legitimacy of U.S. regulators’ concerns about the acquisition but identified errors in the Federal Trade Commission’s case, prompting a reconsideration.
Despite recent challenges, Illumina shares have experienced a notable 34% rally over the past month, although they remain down 37% year-to-date. Stay tuned for further updates on Illumina’s strategic moves in the evolving landscape of genetic and cancer diagnostics.
