Illumina’s $1.2 billion merger might be dead
Late yesterday, the FTC reached the same conclusion as the U.K.’s antitrust authority: Illumina’s planned merger with Pacific Biosciences would create an illegal monopoly in the DNA sequencing business.
As STAT’s Matthew Herper reports, the U.S. agency filed a complaint aiming to block the deal, arguing that Pacific Biosciences has evolved into a rival of the dominant Illumina, and that a merger of the two would be anticompetitive. The U.K.’s Competition and Markets Authority said pretty much the same thing in November, which led the analysts at Cowen to declare the merger pretty much dead.
If that’s the case, Illumina, which has struggled to grow at its previous pace, will need to look elsewhere to expand its sales. In July, the company said annual revenue growth would be about half of what analysts previously expected. Shares are down about 15% since.
Read more.
As STAT’s Matthew Herper reports, the U.S. agency filed a complaint aiming to block the deal, arguing that Pacific Biosciences has evolved into a rival of the dominant Illumina, and that a merger of the two would be anticompetitive. The U.K.’s Competition and Markets Authority said pretty much the same thing in November, which led the analysts at Cowen to declare the merger pretty much dead.
If that’s the case, Illumina, which has struggled to grow at its previous pace, will need to look elsewhere to expand its sales. In July, the company said annual revenue growth would be about half of what analysts previously expected. Shares are down about 15% since.
Read more.
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