Republican lawmakers, state attorneys general, and various advocacy groups have expressed their support for Illumina’s acquisition of cancer-test developer Grail, while the Federal Trade Commission (FTC) fights to reverse the deal. On Monday, these groups filed 14 amicus briefs urging the U.S. 5th Circuit Court of Appeals to overturn the FTC order that seeks to undo the $7.1 billion Grail deal, citing concerns about competition. Illumina, a San Diego-based DNA-sequencing company, appealed the FTC’s ruling last week.
The supporters of the deal argue in their court filings that the FTC exceeded its authority by attempting to reverse a merger that was completed almost two years ago. They further contend that preventing the merge of the companies could hinder the advancement of life-saving technology.
“In one of the briefs, attorneys general from 12 states, including Alaska, Arkansas, Georgia, Idaho, Indiana, Iowa, Kentucky, Louisiana, Nebraska, South Carolina, Utah, and Virginia, stated, ‘Unaccountable federal agency power undermines liberty, and overzealous, unfair agency enforcement impedes technological advancements benefitting citizens’ wellbeing.'”
Additionally, thirty-four Republican lawmakers emphasized the significance of Grail’s early screening test, which has the capability to detect over 50 types of cancers through a single blood draw. Although the test has not yet received approval from the Food and Drug Administration, it has generated limited sales in the past year. The lawmakers argue that Grail’s partnership with Illumina is crucial for obtaining regulatory approval and commercializing the production of the test, both necessary steps to provide the full benefits of these tests to the public and detect cancer as quickly as possible.
The FTC has chosen not to comment on these filings. It’s important to note that the deal has faced opposition on various fronts, including the European Union’s executive body, the European Commission, which blocked the acquisition last year due to similar competition concerns. Illumina has appealed this decision. Additionally, activist investor Carl Icahn, who holds a 1.4% stake in Illumina, launched a proxy fight against the company regarding the Grail deal.
Late last month, Illumina shareholders voted to remove the chair of its board, and following weeks of intense criticism from Icahn, Francis deSouza stepped down as the company’s CEO on Sunday. Icahn’s opposition stemmed from Illumina’s decision to complete the acquisition without obtaining prior approval from antitrust regulators.
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