Illumina Will Appeal FTC Decision in Federal Court, Will Seek US Resolution by Late 2023 or Early 2024

Rhea-AI Summary

Illumina, Inc. (NASDAQ: ILMN) announced it will appeal the Federal Trade Commission's decision requiring the unwinding of its acquisition of GRAIL. The company plans to file a petition for review with the US Court of Appeals, seeking expedited treatment. The FTC's order will remain stayed during the appeal process. Illumina believes it has a strong case following a favorable ruling from an ALJ in September 2022. Successful appeals are expected to enhance shareholder value by expanding the market for the Galleri test, projected at over $44 billion. If the company loses the appeal, it will expedite divestiture of GRAIL to protect shareholder interests.

Positive

• Illumina believes it has a strong case on appeal following a favorable ALJ ruling.
• Winning the appeal could expand market opportunities for the Galleri test in a $44 billion market.

Negative

• If Illumina does not prevail in the appeal, it may need to divest GRAIL, potentially disrupting operations.

SAN DIEGO, April 3, 2023 /PRNewswire/ -- Illumina, Inc. (NASDAQ: ILMN) today announced that it will appeal the Federal Trade Commission's ("FTC") decision ordering the unwinding of Illumina's acquisition of GRAIL.

Illumina intends to file a petition for review promptly with a US Court of Appeals and will seek expedited treatment of the appeal. The FTC's order to unwind the acquisition will be automatically stayed pending appeal.

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 will move as quickly as possible and seeks to arrive at a resolution in the US Court of Appeals by late 2023 or early 2024, at approximately the same time as the decision in the European Court of Justice (ECJ) jurisdictional appeal. 

Winning both appeals would maximize value for shareholders. It enables Illumina to expand the availability, affordability and profitability of the groundbreaking Galleri test in the $44-plus billion multi-cancer screening market. It also protects Illumina's ability to optimize a future divesture should that be in the best interest of shareholders. 

If Illumina does not prevail in this appeal or the ECJ jurisdictional appeal, the company expects to move expeditiously to divest GRAIL in a manner that serves the best interests of Illumina's shareholders.

Cautionary Note on Forward-Looking Statements
This release may contain forward-looking statements that involve risks and uncertainties. Among the important factors to which our business is subject that could cause actual results to differ materially from those in any forward-looking statements are: (i) the commercial success of the Galleri test; (ii) the risks and costs associated with the integration of, and our ability to integrate, GRAIL's business successfully to achieve anticipated synergies, (iii) the risks and costs associated with the ongoing prohibition of integrating GRAIL with us; (iv) the outcome of any regulatory or legal proceeding; and (v) other legislative, regulatory and economic developments, together with other factors detailed in our filings with the Securities and Exchange Commission, including our most recent filings on Forms 10-K and 10-Q, or in information disclosed in public conference calls, the date and time of which are released beforehand. We undertake no obligation, and do not intend, to update these forward-looking statements, to review or confirm analysts' expectations, or to provide interim reports or updates on the progress of the current quarter.

Cautionary Note on Statements of Opinion
In addition to forward-looking statements, this release contains statements of opinion with which all may not agree.

About Illumina
Illumina is improving human health by unlocking the power of the genome. Our focus on innovation has established us as a global leader in DNA sequencing and array-based technologies, serving customers in the research, clinical, and applied markets. Our products are used for applications in the life sciences, oncology, reproductive health, agriculture, and other emerging segments. To learn more, visit illumina.com and connect with us on Twitter, Facebook, LinkedIn, Instagram, TikTok and YouTube.

Investors:
Salli Schwartz
858-291-6421
IR@illumina.com

Media:
David McAlpine
347-327-1336
PR@illumina.com

View original content:https://www.prnewswire.com/news-releases/illumina-will-appeal-ftc-decision-in-federal-court-will-seek-us-resolution-by-late-2023-or-early-2024-301788509.html

SOURCE Illumina, Inc.

FAQ

What is Illumina's plan regarding the FTC decision on its GRAIL acquisition?

Illumina plans to appeal the FTC's decision and seeks expedited review from the US Court of Appeals.

What market potential does Illumina see for the Galleri test?

Illumina targets a $44 billion-plus market for the Galleri multi-cancer screening test.

When does Illumina expect resolution for its appeal?

The company seeks a resolution by late 2023 or early 2024.

What happens if Illumina loses its appeal against the FTC?

Illumina will move quickly to divest GRAIL to protect shareholder interests.