Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Illumina CEO says GRAIL deal is good for competition

Stock MarketsApr 08, 2021 03:45PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: The offices of gene sequencing company Illumina Inc are shown in San Diego, California

WASHINGTON (Reuters) - The chief executive of life sciences company Illumina (NASDAQ:ILMN) argued Thursday his company's deal to buy back GRAIL would lead to cheaper cancer tests rather than potentially pushing up prices as the government alleged in seeking to block the $7.1 billion transaction.

Illumina said in a court filing this week that the Federal Trade Commission's request for a preliminary injunction should be denied because its arguments are "hopelessly speculative."

"This acquisition provides huge benefits to people who may have cancer and don't know it," said CEO Francis deSouza.

GRAIL is developing a blood test to screen for many kinds of cancer at early stages, and Illumina is the sole provider of the technology for the DNA sequencing needed for the test or for rivals designing a competing test, the FTC said.

The potential lack of access would potentially prevent other companies than GRAIL from developing a rival test, the FTC argued.

DeSouza disagreed, noting that the company has offered a 12-year contract to supply its technology to potential GRAIL rivals. "Our whole ethos as a company is to drive the price of sequencing down," he said.

The lawsuit was filed at a time when concerns over health care costs, including prices of medicines like insulin that have been off patent for years, have risen sharply, in some cases forcing patients to make painful decisions.

Illumina formed GRAIL five years ago and spun it off in 2017, although Illumina maintained about a 14.5 percent stake.

This is not Illumina's first tangle with the FTC. In 2019, the agency challenged its planned merger with Pacific Biosciences (NASDAQ:PACB) of California, and the two companies called off the deal.

Illumina CEO says GRAIL deal is good for competition
 

Related Articles

2 Downgraded Oil & Gas Stocks to Avoid
2 Downgraded Oil & Gas Stocks to Avoid By StockNews - Oct 19, 2021

Upward price pressure and uncertainties are evident in the oil market. And given the commodity’s high volatility, fundamentally weak stocks in this space are at the risk of a...

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
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email