In an ongoing, high-stakes legal dispute, the European Commission has ordered Illumina, a leading U.S. biotech company, to divest from Grail, a startup it had acquired the previous year. The order comes on the heels of critical anti-trust concerns that emerged during the Commission’s in-depth review of the $8B merger.
Grail, a promising startup based in the U.S, is renowned in the biotech field for developing early detection tests for cancer using patients’ blood samples. However, their acquisition by Illumina took place mid-investigation, which the European Union authorities have deemed a violation of EU merger control rules. Consequently, the investigative process culminated with a formal veto of the merger by EU officials in 2022.
Unsurprisingly, Illumina has not taken the decision lightly, opting to challenge the ruling. The biotech giant has filed an appeal with the Court of Justice, the apex court of the European Union. In this contentious battle, Illumina has enlisted the help of Cleary Gottlieb Steen & Hamilton, while Grail has secured representation from Latham & Watkins.
As this case unfolds, it serves as a potent reminder of the intense scrutiny multinational mergers can face, particularly in the context of preserving market competition in the global healthcare and biotech sector.