Speaking of antitrust concerns
Regulators in the U.K. think the idea of Illumina buying rival Pacific Biosciences smacks of anticompetitive behavior, and that opinion “likely kills” the proposed $1.8 billion merger, in the words of Cowen analysts.
If so, that means Illumina, which has struggled to grow at its previous pace, will need to look elsewhere to expand its sales. In July, Illumina said that revenue growth would be 6% for the year, about half of what analysts previously expected. Shares are down about 20% since.
What’s particularly interesting about the news is that after months of fretting about the FTC’s apparent scrutiny of biotech mergers — like the aforementioned Roche-Spark alliance — it was the U.K.’s Competition and Markets Authority that eventually spiked the Illumina deal.
If so, that means Illumina, which has struggled to grow at its previous pace, will need to look elsewhere to expand its sales. In July, Illumina said that revenue growth would be 6% for the year, about half of what analysts previously expected. Shares are down about 20% since.
What’s particularly interesting about the news is that after months of fretting about the FTC’s apparent scrutiny of biotech mergers — like the aforementioned Roche-Spark alliance — it was the U.K.’s Competition and Markets Authority that eventually spiked the Illumina deal.
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