Illumina decides to abandon USD7.1B grail acquisition amid antitrust struggles
Date
12/18/2023 7:51:29 AM
(MENAFN) Biotech giant Illumina has announced its decision to reverse the USD7.1 billion Acquisition of cancer-screening company Grail following legal setbacks in antitrust battles with regulators in the U.S. and Europe. The move comes after a U.S. appeals court ruled on Friday that the merger could potentially violate antitrust laws, prompting Illumina to reconsider its strategic course.
The European Union had previously ordered the unwinding of the deal in October, citing the absence of regulatory approval from the 27-nation bloc at the time of the 2021 closure. Illumina was also fined USD475 million by the EU for proceeding with the acquisition without consent. In light of the legal challenges, Illumina had already committed to divesting Grail if unsuccessful in its legal appeals.
Illumina, headquartered in San Diego, is a prominent supplier of next-generation sequencing systems for genetic and genomic analysis. On the other hand, Grail, based in Menlo Park, California, focuses on developing blood tests to detect cancer at an early stage.
The divestiture plan outlined by Illumina involves a third-party sale or capital markets transaction, with the process expected to be completed by the end of the second quarter of 2024. Illumina's CEO, Jacob Thaysen, expressed the company's commitment to facilitating a swift divestiture of Grail to ensure the continued benefit of its technology for patients. Thaysen took on the role of CEO in September amid
a period of legal challenges and uncertainties surrounding the acquisition.
The decision to unwind the Grail acquisition underscores the complexities and legal hurdles faced by major players in the biotech industry, particularly when navigating antitrust regulations. Illumina's acknowledgment of the need for an expeditious divestiture reflects its commitment to addressing regulatory concerns and allowing Grail's innovative cancer-detection technology to continue serving patients. The unfolding developments mark a notable chapter in the biotech landscape, highlighting the importance of legal compliance and regulatory approvals in shaping the trajectories of industry leaders.
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