Illumina ordered to divest Grail
The Federal Trade Commission (FTC) has ordered Illumina to divest Grail, a multi-cancer early detection company Illumina acquired for $7.1 billion.
The agency, which is charged with preventing fraud, deception and unfair business practices, said Illumina’s acquisition of Grail would stifle competition and innovation in the U.S. market for life-saving cancer tests.
The FTC voted 4-0 in its opinion of Illumina’s takeover of Grail. The FTC originally sued Illumina over the acquisition of Grail in 2021. However, an Administrative Law Judge’s Initial Decision dismissed the antitrust charges in a complaint brought by FTC staff. This opinion reverses that decision.
Grail makes non-invasive, early detection liquid biopsy tests that can screen for multiple types of cancer in asymptomatic patients at very early stages using DNA sequencing, according to the FTC. It is one of several companies working toward these life-saving developments. Illumina produces next-generation sequencing (NGS) platforms, which are used to analyze genetic material from the blood samples drawn for MCED tests. These tests can detect multiple types of cancer.
The FTC found the acquisition would diminish competition in the MCED test market, leading to higher prices and decreased choice and quality of tests for consumers. The agency is also concerned that Illumina is the only viable supplier for NGS platforms necessary for MCED tests due to entry barriers preventing competitors to compete with Illumina’s “high throughput, high accuracy and favorable cost profile,” the FTC said.
“Illumina can easily foreclose GRAIL’s competitors by raising their costs or withholding or degrading access to supply, service, or new technologies—inputs on which MCED test developers rely,” the FTC said.
Illumina has said it will appeal the FTC’s decision.
“Illumina intends to file a petition for review promptly with a US Court of Appeals and will seek expedited treatment of the appeal,” the company said April 3. “The FTC's order to unwind the acquisition will be automatically stayed pending appeal.”
However, Illumina also said it would “move expeditiously to divest GRAIL in a manner that serves the best interests of Illumina's shareholders” if it does not win its appeal.
Amy joined TriMed Media as a Senior Writer for HealthExec after covering home care for three years. When not writing about all things healthcare, she fulfills her lifelong dream of becoming a pirate by sailing in regattas and enjoying rum. Fun fact: she sailed 333 miles across Lake Michigan in the Chicago Yacht Club "Race to Mackinac."