Exclusive: Illumina, Grail deal faces EU antitrust veto – sources
By Foo Yun Chee
BRUSSELS (Reuters) – Illumina’s acquisition of biotechnology firm Grail will doubtless be blocked by EU antitrust regulators due to issues about concessions provided by the U.S. life sciences agency, individuals aware of the matter mentioned on Wednesday.
There are doubts whether or not the concessions provided final week to handle the European Fee’s issues concerning the $8 billion cash-and-stock deal will increase competitors, the individuals mentioned.
Illumina has provided rivals royalty-free world licences for a few of its patents and a three-year patent truce with Chinese language rival BGI in Europe in a bid to handle EU antitrust issues over its acquisition of Grail, different individuals aware of the matter mentioned.
The U.S. life sciences firm submitted the concessions to the European Fee final week.
They include royalty-free world licences to rivals of next-generation sequencing know-how and gear and a pledge to not pursue any patent litigation in opposition to BGI in Europe, the sources mentioned.
The EU antitrust watchdog had sought suggestions from rivals and prospects, giving them till Tuesday to take action, they mentioned.
The Fee, which is scheduled to resolve on the case by Sept. 12, declined to touch upon its choice or the concessions.
Illumina mentioned it might proceed efforts to point out the Fee that the deal is pro-competitive and in the very best pursuits of sufferers in Europe and elsewhere.
The corporate could battle to win over the EU antitrust enforcer because it has solely provided a slim vary of patents, a number of the sources mentioned.
The U.S. Federal Commerce Fee is suing to cease the deal.
The patent truce provide with BGI got here after Illumina reached a take care of the Chinese language genomics firm on a three-year litigation standstill in the US.
The businesses have been embroiled in a worldwide authorized battle over their respective sequencing applied sciences, with courtroom circumstances in nations together with Germany, Denmark, Switzerland, and Turkey.
Illumina had provided concessions in January, which included worth cuts and giving rivals’ continued entry to its applied sciences, however that did not persuade the EU antitrust watchdog, individuals aware of the matter advised Reuters.
In separate proceedings, the corporate dangers a hefty nice of as a lot as 10% of its world turnover for leaping the gun and shutting its takeover of Grail in August final 12 months with out ready for the EU inexperienced mild.
(Reporting by Foo Yun Chee; modifying by Jason Neely, Kirsten Donovan)
