The Federal Trade Commission on Monday ordered Illumina Inc. ILMN to divest Grail Inc., saying that “the deal would stifle competition and innovation in the U.S. market for life-saving cancer tests.” Illumina said it will appeal the decision in a federal appeals court, thus staying the order until an appeals verdict is reached. Grail makes non-invasive, multi-cancer early detection (MCED) tests that use DNA sequencing to screen for cancers in patients who are asymptomatic. The FTC’s release said that Illumina “is currently, and for the reasonably near future, will remain the only viable supplier of a critical input: NSG platforms necessary for MCED tests.” The company could “easily foreclose GRAIL’s competitors by raising their costs or withholding or degrading access to supply, service, or new technologies—inputs on which MCED test developers rely,” the release continued. The order reverses an administrative law judge’s initial decision on the matter. “Following the FTC Chief Administrative Law Judge’s (ALJ) decision in favor of Illumina in September 2022, Illumina believes that it has a strong case on appeal,” Illumina said in a statement. The Wall Street Journal notes that Illumina completed its Grail acquisition in 2021 despite concerns from regulators in the U.S. and Europe.
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