- The Federal Trade Commission has ordered Illumina Inc ILMN to divest Grail Inc, saying that the deal would stifle competition and innovation in the U.S. market for cancer tests.
- Billionaire activist Carl Icahn is preparing a proxy fight at Illumina, saying the company went ahead with the controversial acquisition of Grail Inc despite opposition from regulators, costing shareholders $50 billion.
- The Commission found that the acquisition would diminish innovation in the U.S. market for multi-cancer early detection (MCED) tests while increasing prices and decreasing the choice and quality of tests.
- Related: What's The Similarity Between Disney And Illumina? Billionaire Activist Investor Wanted Retired CEO To Come Back
- Illumina will appeal the FTC's decision and seeks to arrive at a resolution by late 2023 or early 2024, the company said in a statement.
- “Winning both appeals would maximize value for shareholders. It enables Illumina to expand the availability, affordability and profitability of the groundbreaking Galleri test in the $44-plus billion multi-cancer screening market. It also protects Illumina's ability to optimize a future divesture should that be in the best interest of shareholders," Illumina said in the statement.
- The FTC order follows a 4-0 vote from its commission.
- Price Action: ILMN shares are down 2.52% at $226.70 on the last check Monday.
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