Maybe the key to Illumina’s future was right there all along
Illumina, the sequencing giant whose flagging revenue has alarmed investors, needs to diversify its business. Grail, the well-funded developer of a cancer blood test that just so happened to spin out of Illumina, just might be the ticket.
As STAT’s Matthew Herper reports, Illumina is in talks about purchasing Grail, which has raised about $2 billion from private investors since 2015. The discussions, first reported by Bloomberg, are in early stages and could well fall apart.
On the one hand, buying Grail makes sense: Cancer blood tests, often called liquid biopsies, could have a bright future in oncology, promising to detect tumors without the need for invasive tissue sampling. That would help Illumina diversify beyond the business of selling sequencers. At the same time, it might not be the most efficient use of capital. Grail, which filed to go public just last week, has seen its valuation rise to nearly $4 billion since 2015, meaning Illumina would be paying a premium for something it used to own. Illumina’s share price fell about 8% on the news.
Read more.
As STAT’s Matthew Herper reports, Illumina is in talks about purchasing Grail, which has raised about $2 billion from private investors since 2015. The discussions, first reported by Bloomberg, are in early stages and could well fall apart.
On the one hand, buying Grail makes sense: Cancer blood tests, often called liquid biopsies, could have a bright future in oncology, promising to detect tumors without the need for invasive tissue sampling. That would help Illumina diversify beyond the business of selling sequencers. At the same time, it might not be the most efficient use of capital. Grail, which filed to go public just last week, has seen its valuation rise to nearly $4 billion since 2015, meaning Illumina would be paying a premium for something it used to own. Illumina’s share price fell about 8% on the news.
Read more.
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