In March 2021, the FTC filed a complaint against Illumina’s acquisition of Grail. The challenge is unique because the acquisition is a vertical merger. Illumina is a biotechnology company that specializes in gene-sequencing, and Grail uses gene sequencing developed by Illumina to develop cancer screening technologies. The Grail acquisition proceeded despite the challenge, and in September 2022, the administrative law judge ruled in favor of the merging entities, finding that the evidence failed to show that the merger impacted Illumina’s abilities or incentives to restrain competition. The FTC appealed to the full Commission, which unanimously overturned the administrative law judge’s ruling. In a rare and notable move, the FTC’s final order demanded that Illumina divest and separate from Grail.  

Illumina and Grail filed for appeal before the Fifth Circuit on April 5, 2023. On April 18, a Fifth Circuit panel granted Illumina’s motion to expedite the proceeding. On April 24, 2023, the FTC decided to stay the order until the Fifth Circuit issues its mandate.  

Follow the latest developments of the case on the Source Blog.

Court Documents:

4/5/2023: Petition for Review of Final Order
3/31/2023: Final Order
3/31/2023: Final Commission Opinion
9/9/2022: Administrative Judge Initial Decision
3/30/2021: FTC Complaint

Case Watch Related Articles:

4/17/2023: The Source Blog: FTC Shows Aggressive Enforcement Agenda in Decision to Unwind Vertical Merger in Healthcare Technology
4/3/2023: FTC Press Release: FTC Orders Illumina to Divest Cancer Detection Test Maker GRAIL to Protect Competition in Life-Saving Technology Market
3/30/2021: FTC: Case Summary