Price of Illumina’s Grail fail extends to board

Illumina

19/12/2023 17:12

(The author is a Reuters Breakingviews columnist. The opinions
expressed are his own.)
    By Robert Cyran
       NEW YORK, Dec 19 (Reuters Breakingviews) - The
gene-sequencing company finally conceded to selling the
cancer-testing business it bought without regulatory approval
for $7.1 bln. Its bravado will be costly, as Grail’s value has
plummeted. Boss Francis deSouza already paid with his job;
directors deserve to, as well.
    Full view will be published shortly.
    Follow @rob_cyran on X
         
    CONTEXT NEWS 
    Gene-sequencing company Illumina said on Dec. 17 it would
divest cancer-test maker Grail either through a sale or capital
markets transaction, with an aim to finalize terms by the second
quarter of 2024. 
    Illumina agreed to buy the shares of Grail it didn’t own for
$7.1 billion in 2020 and completed the acquisition in 2021
without securing approval from U.S. or European antitrust
authorities.
    In July, the EU fined Illumina 432 million euros for going
ahead with the deal, and in October ordered Illumina to divest
Grail.

 (Editing by Jeffrey Goldfarb and Sharon Lam)
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