F.T.C. Orders Gene-Sequencing Company Illumina to Divest Acquisition

Grail originated as a research project within Illumina, but was spun out as a separate company in 2016. Start-ups like Grail rely on gene sequencing in their blood tests for cancer.

Mr. deSouza has argued that Illumina has the financial resources and expertise to accelerate the adoption of Grail’s blood tests for early detection of pancreatic, head and neck, and ovarian cancers.

“We think this technology can be life saving,” Mr. deSouza said in an interview last year.

The F.T.C. chair, Lina Kahn, is a leading proponent of the pre-emptive strike policy in merger regulation. If the commission’s challenge is upheld by the courts, big tech giants and other dominant companies could see their acquisition campaigns curbed or face spinoff orders.

Despite an initial complaint from the F.T.C., Illumina defied regulators by going ahead with its purchase of Grail, betting it would prevail in court.

Last September, an administrative law judge ruled in Illumina’s favor, saying the deal did not raise sufficient antitrust concerns to undo the acquisition. The complaint was brought by the F.T.C. staff.

Article source: https://www.nytimes.com/2023/04/03/business/ftc-illumina-grail-divest.html