Illumina mentioned on Sunday that it might divest most cancers diagnostic take a look at maker Grail after the businesses battled each US and European antitrust enforcers for greater than two years and confronted fierce opposition from activist investor Carl Icahn.
The divestiture might be executed by a third-party sale or capital markets transaction, San Diego-based Illumina mentioned in a press release, including that it might finalize the phrases by second quarter of 2024.
Grail, valued at $7.1 billion underneath Illumina’s deal, is looking for to market a blood take a look at that may diagnose many sorts of most cancers, referred to as a liquid biopsy.
The transfer follows a ruling by the US appeals courtroom on Friday that struck down a Federal Commerce Fee order towards Illumina’s buy of Grail, a former subsidiary.
The courtroom mentioned the company had utilized a unsuitable authorized commonplace.
The FTC was involved that Illumina, the dominant supplier of DNA sequencing of tumors and most cancers cells that assist match sufferers with remedies probably to learn them, may elevate costs or refuse to promote to Grail’s take a look at rivals.
Europe had proposed measures for Illumina to unwind its acquisition of Grail. Illumina argued that it does no enterprise in Europe and subsequently the EU competitors enforcer has no jurisdiction.
Illumina’s acquisition of Grail additionally got here underneath stress from buyers, together with billionaire Icahn, who led a profitable board problem in Could.
Icahn in October sued Illumina, accusing the corporate of breaching its fiduciary duties within the Grail deal.
Neither Grail nor Icahn instantly responded to Reuters requests for remark.