U.S. Appeals Court Sends Illumina’s Acquisition of Cancer Test Developer Grail Back to Federal Trade Commission
In a significant development, the U.S. appeals court has decided to send Illumina’s planned acquisition of cancer test developer Grail back to the Federal Trade Commission (FTC) due to concerns about potential anticompetitive practices. The Fifth Circuit Court of Appeals concluded that the proposed deal is likely to “substantially lessen competition,” raising red flags for the regulatory authorities.
The court found fault with the FTC’s decision, stating that it had utilized a standard incompatible with the Clayton Act. As a result, the appeals court has vacated the Commission’s order and referred the case back to the FTC for reconsideration. This decision has put a temporary halt to Illumina’s acquisition plans and has sparked a new round of deliberation.
This setback follows previous orders from both the FTC and the European Commission, which have directed Illumina to divest Grail. In line with these directives, Illumina has filed a draft registration statement with the U.S. Securities and Exchange Commission, signaling its intentions for a potential divestiture of Grail. The company is actively exploring options for complying with the regulators’ demands.
However, Illumina is not taking these developments lying down. The company has expressed its intent to challenge the European Commission’s decision in court, stating that if it succeeds, it would effectively invalidate the divestiture order. On the other hand, if the legal challenge fails or the appeals court rules against Illumina, the company has no choice but to proceed with the divestiture.
Interestingly, news of Illumina’s predicament has attracted the attention of parties interested in investing or acquiring the Grail unit. The company has reportedly been approached by potential buyers who see an opportunity in this turbulent situation. It remains to be seen how these developments will unfold and what impact they will have on the future of Illumina and Grail.
For now, the ball is in the FTC’s court as it reconsiders the acquisition and weighs the potential consequences for competition in the cancer testing market. As the legal battles continue, stakeholders in the industry will be keeping a close eye on the outcome, which could have far-reaching implications for the healthcare sector and beyond.
“Infuriatingly humble tv expert. Friendly student. Travel fanatic. Bacon fan. Unable to type with boxing gloves on.”