U.S. antitrust regulators have ordered San Diego’s Illumina to unwind its $7 billion acquisition of early detection cancer screening outfit Grail — reversing a previous ruling by an administrative law judge that found the deal did not stifle competition.
Shareholders are expected to vote on Icahn’s alternative board candidates — which Illumina argues are unqualified — at the company’s annual meeting. That typically takes place in late May. Illumina, which makes DNA sequencing equipment and consumables, said it is seeking an expedited court review in the U.S. of the FTC’s divestiture order. It hopes for a ruling by a U.S. Court of Appeals late this year or early next, which roughly coincides with the time frame for a decision by the European Court of Justice over jurisdiction.
Founded inside Illumina, Grail was spun out in 2017 to attract outside investors to back its research, raising about $1.9 billion. Illumina retained 12 percent ownership. Antitrust regulators raised red flags over the deal because Grail’s fledgling rivals also rely on Illumina’s next-generation sequencing equipment. Because Illumina is the only viable supplier for these types of tests, Grail’s rivals are vulnerable to Illumina’s “enormous financial incentive” to give Grail a market advantage — such as inhibiting access to supplies, services or new technologies, according to the FTC.
Business Business Latest News, Business Business Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: CNBC - 🏆 12. / 72 Read more »