Illumina rises after decision to divest cancer test maker Grail

Illumina

18/12/2023 11:51

(Updates)
    ** Shares of gene sequencing company Illumina  ILMN.O  rise
~6.5% to $135.39 premarket      
    ** Will divest cancer diagnostic test maker Grail  GRAL.O 
after over two years of antitrust battles  
    ** Divestiture will be executed through a third-party sale
or capital markets transaction
    ** Terms to be finalized by Q2 2024
    ** Grail will continue to be held separately, with committed
funding from Illumina through the divestment process
    ** "We view this decision as a positive for ILMN, giving
added clarity to resolving the Grail overhang by end of 2Q
2024," Leerink Partners analyst Puneet Souda said in a note   
    ** ILMN spun off Grail in 2016, retaining a 12% stake, and
reacquired Grail in 2021 despite competition concerns
        ** Grail, valued at $7.1 billion under Illumina's deal,
is developing a blood test known as a liquid biopsy that can
diagnose many kinds of cancer
  
    ** Up to last close, stock down 37.1% YTD

 (Reporting by Mariam Sunny in Bengaluru)
 ((Mariam.ESunny@thomsonreuters.com;))