Breaking News
Investing Pro 0
Cyber Monday SALE: Up to 54% OFF InvestingPro+ CLAIM OFFER

U.S. FTC to appeal judge's decision on Illumina-Grail deal

Economy Sep 02, 2022 05:36PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. The offices of gene sequencing company Illumina Inc are shown in San Diego, California January 11, 2016. REUTERS/Mike Blake
 
ILMN
-0.95%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

By David Shepardson

WASHINGTON (Reuters) - The Federal Trade Commission said it would appeal a decision issued on Thursday by the agency's chief administrative judge in favor of Illumina Inc (NASDAQ:ILMN)'s $7.1 billion acquisition of cancer detection test maker Grail Inc.

Judge D. Michael Chappell ruled the acquisition will not hurt competition, in a blow to the agency, which was challenging the deal. The ruling has not yet been made public.

Under FTC rules, the decision is subject to review by the full Federal Trade Commission. The FTC staff filed a notice Friday https://www.ftc.gov/system/files/ftc_gov/pdf/D09401CCNoticeofAppeal.pdf appealing the decision. Illumina shares closed down 2.3% on Friday.

Increasing competition has been a mandate of the Biden administration, and the director of the FTC's Bureau of Competition, Holly Vedova, had said on Thursday the agency was considering challenging the judge's ruling.

The FTC filed a lawsuit in March 2021 to stop Illumina's deal to buy its former subsidiary Grail, arguing it would slow innovation for tests designed to detect multiple kinds of cancer. The vote to sue was unanimous.

The FTC has said Illumina is the dominant provider of DNA sequencing for multi-cancer early detection tests, which Grail uses to make a blood test to detect cancers.

The deal would mean Illumina would have no incentive to provide the DNA sequencing to Grail's rivals, or would have an incentive to try to raise their costs, the FTC had argued.

But the judge "rejected the FTC's position that the deal would adversely affect competition in a putative market for multi-cancer early detection tests," Illumina said on Thursday.

Reuters reported in July that Illumina's acquisition of Grail will likely be blocked by EU antitrust regulators because of concerns about concessions offered by the U.S. life sciences firm.

Illumina closed the deal in August 2021 but said it would hold Grail as a separate company with regard to the EU review.]

The FTC in May 2021 dismissed its federal court lawsuit, preferring to go ahead with the administrative proceeding, arguing the federal court case was no longer needed since the European Commission was investigating.

U.S. FTC to appeal judge's decision on Illumina-Grail deal
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email