The Federal Trade Commission (FTC) has ordered Illumina to divest its $7.1 billion acquisition of cancer test developer Grail, citing concerns that the deal would stifle innovation and competition in the market for multi-cancer early detection tests.
The FTC’s decision reverses an administrative judge’s ruling from September, which had dismissed the FTC’s initial challenge to the acquisition. Illumina said it plans to appeal the decision in federal court, noting it has a “strong case on appeal” after previously prevailing over the FTC last year.
The company expects a final decision on its appeal in late 2023 or early 2024, which is also when it anticipates a decision on its appeal of a similar order by European Union regulators. Shares of Illumina were down more than 2% in afternoon trading on Monday following the announcement.
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