Illumina will divest GRAIL, a healthcare company focused on life-saving early detection of multiple cancers, after a federal appeals court upheld a Federal Trade Commission ruling that it should unwind its deal with GRAIL on antitrust grounds, the New York Times reports.
The U.S. Fifth Circuit Court of Appeals issued its decision on Dec. 15, 2023, in the matter of Illumina v. the Federal Trade Commission. According to the company, Illumina elected not to pursue further appeals of the Fifth Circuit’s decision following a review of the court’s opinion.
The deal faced opposition in Europe, as well, with the European Commission in September 2022 prohibiting Illumina from buying GRAIL, according to the NY Times.
Illumina had previously stated that if it was not successful with either its European Court of Justice jurisdictional appeal or in a final decision of the Fifth Circuit, it would divest GRAIL.
“We are committed to an expeditious divestiture of GRAIL in a manner that allows its technology to continue benefitting patients,” Illumina CEO Jacob Thaysen says in a news release. “The management team and I continue to focus on our core business and supporting our customers. I am confident in Illumina’s opportunities and our long-term success.”
Illumina, a provider of DNA sequencing, acquired GRAIL in 2021. This acquisition also served as a reunion for the two organizations; Ilummina was responsible for the formation of GRAIL in 2016.
The divestiture will be executed through a third-party sale or capital markets transaction, consistent with the European Commission’s divestiture order, with the goal of finalizing the terms by the end of the second quarter of 2024, according to Illumina.
Featured Image: Illumina, Inc. headquarters in San Diego, CA. Photo: Illumina
