Illumina to take $1.47 bln goodwill impairment charge related to Grail in Q2 (updated)

Grail

27/06/2024 22:13

(Adds details, background throughout)
       June 27 (Reuters) - Illumina  ILMN.O  said on Thursday
it will take a goodwill impairment charge of $1.47 billion in
the second quarter related to the recently spun-off Grail Inc
 GRAL.O .
        As an independent company, Grail is betting on
commercial partnerships with health systems, employers and life
insurance firms to power its near-term growth through its
flagship cancer-detection test.  
  
        Grail's 
    shares fell nearly
     14% after its market debut on Tuesday.
  
        The company's greater-than-expected expenditures and
delays in advancing its tests had also forced Illumina to take
impairments that totaled $4.7 billion, activist investor Carl
Icahn said in 
    December
    .
  
        On Thursday, Illumina said it will likely recognize an
additional impairment charge of about $420 million for Grail's
in-process research and development intangible asset in the
second quarter. 
  
        The company also said that it does not expect any
material future cash expenses related to these impairments. 
  

 (Reporting by Leroy Leo and Nathan Gomes in Bengaluru; Editing
by Shinjini Ganguli and Alan Barona)
 ((Leroy.Dsouza@thomsonreuters.com ; https://twitter.com/LeroyLeo7;))