Illumina Strategizes After Grail Acquisition Setback With EU

September 7, 2022

Illumina is looking at its options after its acquisition of Grail was recently blocked by an EU commission. The company intended to scale up Grail’s cancer test development and production, but the commission nixed the merger due to concerns Grail’s competitors could be blocked from using Illumina’s sequencing technology, slowing development and squashing competition in the cancer testing market.

According to Jared Whitlock, “Investors appear to favor Illumina sticking to its core DNA sequencer business, as the company’s stock ticked up Tuesday when the European Commission’s decision was announced. But in Grail’s cancer tests, Illumina sees a market that will explode over the long term. Because the European Commission could order Illumina to divest Grail, Illumina said it’s exploring strategic alternatives, which comes with its own challenges. Qin said finding a Grail buyer or investors in this cash-strapped market will be tough.”

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