Federal regulators rejected biotechnology company Illumina's $7B acquisition of cancer-test developer Grail.
The Federal Trade Commission (FTC) ordered Illumina to unwind the
merger, saying that the deal would reduce competition in the burgeoning
cancer diagnostics space.
- The FTC said the merger would lead to higher prices for diagnostics and harm future research efforts.
- Illumina produces gene-sequencing machines used in cancer diagnostics tests, which analyze blood samples.
- Illumina
founded Grail in 2015 but spun off the unit in 2017. It retained a
small stake in Grail and bought the remainder in 2020.
- The FTC sued to block the deal in March 2022, but Illumina completed the transaction in August.
- At the time, Illumina said there was no legal impediment preventing it from completing the deal.
- Illumina said it plans to appeal the FTC's decision.
- Illumina
proceeded with the deal despite concerns from the FTC and European
regulators about its effects on competition in the cancer diagnostics
space.
- In September, EU regulators blocked the deal on the grounds that it would negatively impact innovation and reduce customer choice.
