Copyright 2022 MarketWatch, Inc. All rights reserved. Illumina initially completed the acquisition in August 2021, causing the Commission to open an investigation against Illumina for breaching its "standstill obligation". Although Illumina committed to maintain GRAIL as a separate entity during the Commissions assessment of the transaction, this is likely to amount to a breach of Article 7 of the EUMR under which a concentration cannot be implemented until it has been declared compatible with the internal market. So overall, I expect this to be a temporary storm. Illumina has previously said it was committed to showing the deal is pro-competitive and that it would facilitate equal and affordable access to cancer detection tests developed by Grail. The transaction did not meet the EUMRs jurisdictional thresholds but the Commission invited Member States to submit a referral request under Article 22 EUMR, despite the deal also not meeting the national merger control thresholds of the relevant Member States. In a landmark decision announced on September 6, 2022 ("Decision"), the European Commission ("EC") prohibited the acquisition by Illumina, a U.S. company specialising in genomic sequencing, of GRAIL, a U.S.-based start-up developing early cancer-detection tests ("Transaction"). Mar 31, 2021 08:58AM EDT. On September 6, the European Commission (EC) moved to unwind and block Illumina's $7.1 billion acquisition of Grail. It demonstrates the long reach the EU regulator can have in influencing business deals worldwide. Separately, Illumina is also appealing the July 2022 decision from the General Court that confirmed the EC's jurisdiction to review the . September 7, 2022. Illumina stock fell 8.6% on Sept. 21, the day it announced the Grail acquisition. Prudent companies will heed this warning, and avoid premature implementation of a transaction, instead awaiting the outcome of the . The parties announced Illumina's proposed acquisition of Grail in September 2020 and claimed that it would speed global adoption of Grail's MCED and enhance patient access to the tool. Law360 - June 9 2021. SAN DIEGO, Sept. 6, 2022 /PRNewswire/ -- Illumina, Inc. (NASDAQ:ILMN), today received a decision from the European Commission prohibiting the company's acquisition of GRAIL. "However, it appears the merger may ultimately be blocked," Canaccord concluded, reiterating the Buy rating and the $380 per share target on the stock due to new product updates expected from the company at upcoming investor and customer events. EU EIOPAs Report On Credit Protection Insurance Distributed By Bancassurance Operators. The commission's "practical guidance" may have come on March 26, but in court documents related to the Illumina-Grail deal, it has emerged that enforcers were pursuing the new policy as far back as February. Illumina is a global genomics company that develops next generation sequencing technology (NGS) which are a key input for early detection cancer tests that are able to screen for several cancers in asymptomatic patients. 217.66-.86 (-0.39%) Illumina-Grail Deal Blocked by European Union's Antitrust Regulator -- WSJ. This was again seen as unlikely to be effective in practice as Illumina could always offer less technical support to GRAILs competitors or grant preferential treatment to GRAIL, making it harder for other companies to compete. document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); Herbert Smith Freehills LLP is authorised and regulated by the Solicitors Regulation Authority. Visit a quote page and your recently viewed tickers will be displayed here. Required fields are marked *, You may use these HTML tags and attributes:

. Learn More. With its decision to block the transaction, the EC is now contemplating a possible unwinding of the transaction, while Illumina has said that it will challenge any order from the EC to dispose of Grail. antitrust. This copy is for your personal, non-commercial use only. In a landmark decision announced on September 6, 2022 ("Decision"), the European Commission ("EC") prohibited the acquisition by Illumina, a U.S. company specialising in genomic sequencing, of GRAIL, a U.S.-based start-up developing early cancer-detection tests ("Transaction"). The European Union's competition authority blocked a merger of Illumina and Grail, even though Illumina said Grail had no business in Europe. GRAIL is a customer of Illumina, using the NGS technology to develop its early detection cancer tests. By Kim Mackrael BRUSSELS--The European Union is blocking U.S. life-sciences company Illumina Inc.'s $7.1 billion acquisition of Grail Inc., saying the deal would have stifled innovation and. Cash flow used in operations was$ million . This is the first time the Commission has examined a transaction below the EUMR thresholds and all national EU Member State thresholds which was referred to it pursuant to . GRAIL will remain a separate and independent unit, pending ongoing regulatory and legal review Illumina, Inc. (NASDAQ: ILMN) announced today that it has acquired GRAIL, a healthcare company focused on life-saving early detection of multiple cancers, but will hold GRAIL as a separate company during the European Commission's ongoing regulatory review. This is the first time the Commission has examined a transaction below the EUMR thresholds and all national EU Member . September 12, 2022. Last December the General Court heard Illumina's appeal requesting annulment of the European Commission's decision to accept jurisdiction in Illumina/GRAIL. In contrast to the Commissions prohibition decision, the US Federal Trade Commission administrative court (the FTCs in-house court) last week issued a decision supporting Illuminas acquisition of GRAIL, rejecting the FTCs conclusion that the transaction would adversely affect the market for NGS-based cancer tests. Hedge-fund giant Elliott warns looming hyperinflation could lead to global societal collapse, Heres strong new evidence that a U.S. stock-market rally is coming soon, U.S. Treasury sweetens the pot on I-bonds by adding a fixed rate, $1.9 billion Powerball drawing is delayed because of security issue. Interestingly, Grail was founded as a subsidiary of ILMN and was spun off. On September 6, the EC blocked the proposed transaction based on vertical competitive concerns, after almost a 14-month Phase II investigation. The Commission's interim measures decision in Illumina/Grail underscores its recent tough stance against gun-jumping practices. India SEBI v. Start-Ups: SEBI Scrutiny On PE/ VC Funds. The European Union antitrust regulator has blocked the $7.1 billion acquisition deal, claiming that it could hurt competition and innovation in the early cancer-detection blood . How To Hire (And Fire) Expatriate Workers In Indonesia. Read more on seekingalpha.com. Illumina is a global genomics company that develops next generation sequencing technology (NGS) which are a key input for early detection cancer tests that are able to screen for several cancers in asymptomatic patients. Specific legal advice about your specific circumstances should always be sought separately before taking any action. In September 2020, Illumina agreed to acquire Grail, a U.S.-based developer of blood tests for multiple early stage cancers, for US$7.1 billion. News Corp is a global, diversified media and information services company focused on creating and distributing authoritative and engaging content and other products and services. In the first quarter, Illumina's s ales soared about 27% year-over-year to a record $1 billion, up from roughly 20% YOY during the previous quarter. All together, the guidance missed Illumina stock analysts' forecast for $4 . Illumina is the only provider of DNA sequencing that . The court held that the FTC had not been able to demonstrate that GRAILs competitors were in a position to launch competing tests either immediately or in the near future. In July 2022 the Commission issued a statement of objections alleging that Illumina and GRAIL breached the standstill obligation by implementing the acquisition while the Commissions detailed investigation was ongoing. BRUSSELS--The European Union is blocking U.S. life-sciences company Illumina Inc.'s $7.1 billion acquisition of Grail Inc. just days after the company won its case in the U.S . . The Wall Street Journal. The EU's competition regulator has blocked the acquisition of a biotech company by a global genomics business after identifying concerns about how the deal could impact the development and supply of potentially revolutionary cancer diagnostic tools. Wall Street has remained bullish on Illumina (ILMN) stock, with an average rating of Buy from analysts. BRUSSELST.css-1h1us5y-StyledLink{color:var(--interactive-text-color);-webkit-text-decoration:underline;text-decoration:underline;}.css-1h1us5y-StyledLink:hover{-webkit-text-decoration:none;text-decoration:none;}he European Union blocked Illumina Inc.s acquisition of cancer-test developer Grail Inc., putting a $7.1 billion merger into jeopardy just days after a U.S. administrative law judge allowed it to go forward. The European Commission has opened an in-depth, three-month investigation into Illumina's planned takeover of Grail, a deal valued between $7 billion to $8 billion. This is the first time the Commission has examined a transaction below the EUMR thresholds and all national EU Member State thresholds which was referred to it pursuant to its revised policy to catch such transactions jurisdictionally. The company has already acquired Grail, but may . This is seen as a serious breach under the EUMR and the Commission could ultimately impose fines of up to 10% of the parties worldwide turnover. For non-personal use or to order multiple copies, please contact Central Hong Kong. Philippines The New Normal: The Revised Implementing Rules And Regulations To The Telecommuting Act. However, the bright picture I have painted up to now is tainted with the operating loss of $134 million sustained due to the GRAIL acquisition. This is the first time the Commission has examined a transaction below the EUMR thresholds and all national EU Member State thresholds which was referred to it pursuant to its revised policy to catch such transactions jurisdictionally. Previously . Article 8(4) EUMR provides that in such a case the Commission may require the undertakings concerned to dissolve the transaction or take any other measures appropriate to restore the position to that prior to its implementation. UK Cyber Security Handbook The Essential Handbook For In-House Counsel. Virgin IslandsU.S. Illumina is the only provider of DNA sequencing that . Illumina announced that it intends to appeal the decision. By Kim Mackrael. It is also the first time the Commission prohibits a transaction that was completed in contravention of the EUMR. The Illumina-GRAIL deal has also been reviewed under merger control rules in the US, where . Illumina will have to divest Grail after the European Union vetoed the $7.1 billion acquisition over concerns it would hurt competition and stifle . Grail will still run its test using Illumina machines, and Grail's competitors will likely rely as well on Illumina's best-in-class sequencers. What's more, Illumina was profitable . The $3.9B impairment charge has led the company to forecast $ (26.56) - $ (26.41) of GAAP diluted loss per share for this year compared to $ (2.93) - $ (2.78) in the previous guidance. Commissioner Vestager issued a statement in which she announced that the Commission will, in due course, adopt a separate decision requiring the parties to dissolve the transaction and restore GRAILs independence. 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Sandwich IslandsSpainSri LankaSudanSurinameSvalbard & Jan Mayen IslandsSwazilandSwedenSwitzerlandSyrian Arab RepublicTaiwanTajikistanTanzaniaThailandTimor-LesteTogoTokelauTongaTrinidad and TobagoTunisiaTurkeyTurkeyTurkmenistanTurks and Caicos IslandsTuvaluU.S. BRUSSELS--The European Union is blocking U.S. life-sciences company Illumina Inc.'s $7.1 billion acquisition of Grail Inc. just days after the company won its case in the U.S., saying the deal would have stifled innovation and reduced choice in an emerging market for early cancer-detection blood tests. Germany Double-Hat DPOs: Berlin Data Protection Authority Fines An E-Commerce Platform For Breaching DPO Conflict Of Interest Requirements. Illumina offered remedies, including a licence to some of its patents to other NGS suppliers, but the Commission concluded this would only have had a limited impact as the patents concerned were due to expire in the short term and its competitors would need many more patents in order to develop a viable competing NGS system. Company SSEK Named Labor And Employment Law Firm Of The Year At ALB Indonesia Law Awards 2022. Despite GRAIL having no turnover in the EEA, the Commission launched its review in April 2021 under its new policy on Article 22 of the EU Merger Regulation (EUMR), before issuing . European Commission Acts to Block Illumina-Grail Transaction Just Days After Judge Rejects FTC Action Against the Deal. The Commissions gun jumping investigation. Philippines A Short Primer On The SIM Card Registration Act. The firm wrote that the experts in merger law and regulation it contacted were less optimistic about the ILMN's position in Europe, where the European Commission is expected to issue its decision on the antitrust case by Sep. 12. Administrative Law. All Rights Reserved. . Illumina would therefore already have the incentive today to foreclose GRAILs competitors. Although Illumina committed to maintain GRAIL as a separate entity during the Commissions assessment of the transaction, this is likely to amount to a breach of Article 7 of the EUMR under which a concentration cannot be implemented until it has been declared compatible with the internal market. The $7.1 billion deal would have stifled innovation and reduced choice in an emerging market for early cancer-detection blood tests, the The company is reviewing the Commission's order and intends to appeal the decision. Philippines BSP Gears For Regulatory Sandbox Framework. Kyriakos Fountoukakos, Partner, Herbert Smith Freehills, Listed Under: Report Tags: Herbert Smith Freehills, Name --Illumina, Inc. today announced its financial results for the third quarter of fiscal year 2022, which include consolidated financial results for GRAIL. - BRUSSELSThe European Union blocked Illumina Inc.'s acquisition of Grail Inc., just days after the American life-sciences company won its case to do so in the U.S. A federal judge recently dismissed the Federal Trade Commission's challenge of Illumina Inc.'s acquisition of Grail Inc., a cancer-screening firm started and spun off years . The Federal Trade Commission filed an administrative complaint and authorized a federal court lawsuit to block Illumina's $7.1 billion proposed acquisition of Graila maker of a non-invasive, early detection liquid biopsy test that can screen for multiple types of cancer in asymptomatic patients at very early stages using DNA sequencing. . San Diego gene-sequencing giant Illumina has vowed to fight the U.S. Federal Trade Commission's legal action to block its blockbuster $7.1 billion acquisition of Grail Inc. Following detailed market testing the Commission concluded that the remedies offered by Illumina were not sufficient to address the competition concerns resulting from the transaction. European officials are probing the deal because of concerns it "may reduce competition and innovation in the emerging market for the development and commercialization of cancer . Your email The commission's decision can be appealed. The FTC has indicated that it will appeal the decision. Illumina will likely eventually have to unwind its acquisition of Grail as a result of the EU merger regulator's block on it . Save my name, email, and website in this browser for the next time I comment. FTC files suit against Illumina (ILMN) to block vertical integration with Grail. Reuters reported in July Illumina's acquisition of Grail will likely be blocked by EU antitrust regulators because of concerns about concessions offered by the U.S. life sciences firm, people .