Illumina to Sell Grail Unit

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Illumina Inc. announced on Sunday its decision to sell its Grail unit following a recent ruling by a federal appeals court. The court deemed the $7.1 billion acquisition in 2021 to be anticompetitive. Illumina, a leading manufacturer of gene-sequencing products, stated that it will divest Grail and will not be appealing the court’s decision. This move comes after European regulators previously ordered Illumina to divest Grail due to antitrust concerns. Despite initially contesting the jurisdiction of the European Commission in this matter, Illumina has now committed to swiftly completing the divestiture.

Chief Executive Jacob Thaysen affirmed the company’s dedication to ensuring that Grail’s technology can continue to benefit patients. He also emphasized that Illumina’s management team remains focused on their core business and supporting their customers. Thaysen expressed confidence in the company’s future prospects and long-term success.

Grail specializes in the development of a blood test designed to detect early signs of cancer. Illumina anticipates completing the sale of Grail by the end of the second quarter in 2024.

According to a report by The Wall Street Journal on Saturday, the appeals court acknowledged that U.S. regulators were justified in challenging the acquisition. However, they identified errors in the Federal Trade Commission’s case and consequently sent it back to the FTC for reconsideration.

These recent developments come amid a challenging period for Illumina. In mid-November, the company experienced a significant drop in its stock price, reaching its lowest point in almost a decade. Following this, Illumina appointed a new CEO in September, shortly after revising down its full-year sales outlook in August.

Although Illumina shares have shown a strong rally of 34% over the last month, they are still down 37% year to date.

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