A Gene Sequencing Pioneer Battles Over What It Can Buy, The New York Times
Illumina, a leading gene-sequencing machine producer, has announced the sale of Grail, a cancer test developer it acquired for $7.1 billion in 2021. This decision follows a federal appeals court’s affirmation of the Federal Trade Commission’s (FTC) challenge to the deal on antitrust grounds. The court ruling is considered a significant test of regulators’ attempts to prevent large companies from acquiring emerging innovators.
The acquisition had already faced opposition from the European Union in September 2022, signaling international regulatory challenges. Illumina had stated its intent to divest Grail if unsuccessful in appeals in either jurisdiction. Despite initial FTC concerns about diminishing innovation and increasing prices, Illumina proceeded with the acquisition, expressing confidence in winning the legal battle.
Grail, originally a research project within Illumina, focuses on early cancer detection through gene sequencing in blood tests. Illumina’s CEO, Jacob Thaysen, expressed commitment to a swift Grail divestiture, emphasizing continued support for Illumina’s core business.
The sale of Grail is set to occur through a third-party sale or capital market transaction, with a target completion date of the end of the second quarter next year. The court’s affirmation of the FTC’s challenge may have broader implications, signaling a more aggressive regulatory stance under F.T.C. Chair Lina Khan towards mergers deemed potentially detrimental to the economy.
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