Illumina, Inc., a biotechnology firm, has announced its decision to divest GRAIL, a company specializing in noninvasive, multi-cancer early detection (MCED) liquid biopsy tests utilizing DNA sequencing. This decision comes in the wake of a ruling by the U.S. Court of Appeals for the Fifth Circuit, which agreed with the Federal Trade Commission (FTC) that the acquisition could potentially harm competition within the cancer detection test market.
According to a press release from Illumina, the divestiture will be executed through either a third-party sale or capital markets transaction, in line with the European Commission's divestiture order. The company aims to finalize terms by the end of Q2 2024. "We are committed to an expeditious divestiture of GRAIL in a manner that allows its technology to continue benefitting patients," stated Jacob Thaysen, CEO of Illumina. The company also confirmed it would not appeal against the Fifth Circuit's decision.
In an FTC press release, it was revealed that the commission had filed a lawsuit in 2021 seeking to block Illumina’s $7.1 billion acquisition of GRAIL. According to FTC, Illumina is currently the only viable provider of DNA sequencing for MCED tests—capable of detecting up to 50 types of cancer—in the United States. The FTC alleged that Illumina’s proposed acquisition of GRAIL could potentially stifle competition and innovation within the U.S. MCED test market. The commission warned that as the sole viable supplier of a critical input, Illumina could increase prices charged to GRAIL competitors for Next-Generation Sequencing (NGS) instruments and consumables or obstruct their research and development efforts.
In April 2023, according to another FTC press release, an opinion and order were issued by the commission requiring Illumina to divest GRAIL. This opinion reversed an earlier decision by an administrative law judge to dismiss the antitrust charges.
In a press release issued following the Fifth Circuit’s decision, FTC Bureau of Competition Director Henry Liu said, "This is a major win for the FTC as it works to protect competition in health care. Illumina’s decision to unwind its acquisition of Grail ensures the market for cancer detection tests remains competitive and delivers a choice of high-quality tests for patients and physicians, ultimately saving lives."
