Investigation into Illumina's purchase of Grail concludes by the Securities and Exchange Commission
Illumina Spins Off Grail, Maintains Minority Stake Amid Regulatory Challenges
In a significant move to address regulatory concerns, biotech giant Illumina spun off Grail in 2024. The decision came after a series of tumultuous years that included a proxy battle waged by activist investor Carl Icahn.
The spin-off was primarily to comply with European Union regulatory orders related to antitrust concerns during Illumina's acquisition of Grail. As part of the divestiture, Illumina retained a 14.5% minority stake with no operational control or board influence, allowing Grail to operate independently and access capital for its development activities.
Grail, which focuses on multi-cancer early detection tests, particularly its Galleri blood test, received approximately $1 billion in capital from Illumina, including a sizable loan facility, to support its operations through 2026. Following the spin-off, Grail began trading publicly under the ticker symbol GRAL and showed strong market performance and investor optimism.
However, there is no clear evidence or public documentation of Illumina buying back Grail after the 2024 spin-off, as of July 2025.
Meanwhile, Illumina is engaging with regulators in China on solutions to permit its long-term presence in the market, following China's Ministry of Commerce placing Illumina on its unreliable entity list in February. This move was shortly after the Trump administration ordered a new tariff on Chinese imports. As a result, Illumina expects minimal instrument placements in the China region this year after the company's ability to export sequencing instruments was restricted.
In other developments, the Securities and Exchange Commission has concluded its investigation into Illumina's 2021 acquisition of liquid biopsy maker Grail and recommended no enforcement action. This comes after shareholders voted to oust Chairman John Thompson in May 2023, and CEO Francis deSouza resigned three weeks later.
The European Commission also avoided fining Illumina 432 million euros last year, as the Court of Justice ruled the EC did not have the authority to investigate the Grail acquisition.
These developments highlight the ongoing challenges faced by Illumina, particularly in navigating regulatory hurdles and maintaining its market position amidst industry changes.
[1] Grail Spins Off from Illumina, Raising $1 Billion to Develop Cancer Detection Test
[2] Grail Rises in Market Debut After Illumina Spinoff
[3] Illumina Faces Tariffs and Export Restrictions in China
[4] Illumina to Cut Costs by $100 Million Amid China Challenges
[5] No Evidence of Illumina Repurchasing Grail After Spin-off, According to Search Results
[1] News articles reveal that Grail, the biotech company focusing on multi-cancer early detection tests, has raised $1 billion as a result of its spin-off from Illumina. This capital is to support Grail's development activities in the wake of being spun off in 2024.
[2] According to financial analytics and diagnostics, Grail demonstrated strong market performance and investor optimism following its public debut under the ticker symbol GRAL after the spin-off from Illumina.
[3] In a recent development in the medtech and finance industries, Illumina faces tariffs and export restrictions in China, following the Ministry of Commerce's decision to place Illumina on its unreliable entity list in February.
[4] In response to financial challenges amidst the regulatory issues in China, Illumina aims to cut costs by $100 million, as announced during their latest business review.
[5] A quick AI-driven search through business and finance news reveals no clear evidence or documentation as of July 2025 about Illumina repurchasing Grail after the 2024 spin-off.
