Illumina will sell cancer detection startup Grail after a U.S. appeals court said the $7.1 billion acquisition violated antitrust laws, the company announced Sunday. ILMN stock rose sharply early Monday.
The Fifth Circuit Court of Appeals on Friday agreed with the Federal Trade Commission that Illumina's Grail takeover likely would "substantially lessen competition." The appeals court remanded the case to the FCC, saying the commission used the wrong antitrust standard.
In October, the European Commission ordered Illumina to unwind the Grail takeover.
In Sunday's press release, Illumina said it had previously stated that it would divest Grail if it weren't successful with either its appeal to the Fifth Circuit or the European Court of Justice.
The maker of genome sequencing machines said it will aim to divest Grail to a third party or via capital markets, with final terms by the second quarte of 2024.
Illumina Stock
ILMN stock jumped 7% early Monday. On Friday, shares fell 3.3% to 127.10, but still jumped 12.5% for the week. ILMN stock is down 37.4% so far in 2023.
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