Illumina's Divestment of Cancer Test Maker Grail Resolves Antitrust Battles
Illumina, a gene sequencing company, has announced plans to divest cancer diagnostic test maker Grail after facing antitrust battles with U.S. and European regulators for over two years. The divestiture will be executed through a third-party sale or capital markets transaction, with the terms expected to be finalized by the second quarter of 2024. Grail, valued at $7.1 billion, is seeking to market a blood test that can diagnose various types of cancer. Illumina had reacquired Grail in 2021 despite competition concerns, and a U.S. appeals court recently ordered the Federal Trade Commission (FTC) to conduct a new review of the acquisition. The FTC had expressed concerns about Illumina's dominant position in DNA sequencing and its potential impact on competition. The divestment is also a response to pressure from activist investor Carl Icahn, who led a successful board challenge and sued Illumina over the Grail deal.