SAN
DIEGO, Oct. 13, 2023 /PRNewswire/ -- Illumina,
Inc. (NASDAQ:ILMN), has received an order from the European
Commission (EC) directing the company to divest GRAIL.
Receipt of the order is an important next step in evaluating
divestiture options for GRAIL. Illumina is committed to resolving
all issues regarding GRAIL in a timely manner, with the objective
of achieving the maximum value for shareholders and the best
outcome for GRAIL. Notably, the terms of the order provide for
flexibility in transaction structure, an encouraging outcome from
Illumina's ongoing dialogue with the EC.
Under the terms of the EC's order, Illumina will have
twelve months to divest GRAIL, with the potential for a
three-month extension, and will be permitted to explore a range of
structures including, but not limited to, a third-party sale or a
capital markets transaction. Illumina will lead the divestiture
process and, with the assistance of financial and legal advisors,
has already begun the preparatory work necessary for divestment, if
needed.
Consistent with the previous interim measures orders, Illumina
is required to continue funding GRAIL until any divestiture. In the
instance of a capital markets transaction, Illumina must capitalize
GRAIL at the time of the transaction with two-and-a-half years of
funding based on GRAIL's long-range plan. The order also provides
for Illumina to retain a stake in GRAIL of up to 14.5% and
reestablish the royalty arrangement it previously had in place with
GRAIL.
Illumina maintains that the Commission does not have
jurisdiction over this acquisition. The company's jurisdictional
challenge remains pending at the European Court of Justice
(ECJ).
If Illumina wins its jurisdictional challenge at the ECJ, the
basis for the EC's divestiture order would be eliminated. However,
if Illumina is not successful with either its ECJ jurisdictional
appeal or in a final decision of the U.S. Fifth Circuit Court of
Appeals, the company will divest GRAIL.
Illumina's third quarter 2023 earnings call is scheduled for
November 9, and company leaders will
respond to further questions from the investment community at that
time.
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)
our ability to agree on a divestment plan with the European
Commission pursuant to the divestiture order it has issued; (ii)
our ability to timely execute a strategic alternative that
maximizes the value of GRAIL to our stockholders given the
parameters required by the divestiture order; (iii) the risk that
ongoing legal proceedings challenging the decisions of the European
Commission and the U.S Federal Trade Commission do not result in
favorable outcomes for us; (iv) the risk that distractions
associated with the potential divestment of GRAIL and associated
legal proceedings or regulatory obligations will harm our business,
including current plans and operations, 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
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SOURCE Illumina, Inc.