Illumina-Grail Investigation Closure and Financial Impact

SEC Investigation Closure

Illumina has officially confirmed that the Securities and Exchange Commission (SEC) has closed its investigation into the company's $8 billion acquisition of cancer test developer Grail1. The announcement, made on Thursday, May 8, 2025, indicated that the SEC doesn't intend to pursue any enforcement action related to the deal1. This confirmation follows earlier reports from May 6, 2025, which suggested that the SEC was expected to drop the investigation2.

Grail Acquisition History

The Grail acquisition has had a complex regulatory history. Initially, the Federal Trade Commission (FTC) had filed an administrative complaint and authorized a federal court lawsuit to block Illumina's proposed acquisition, which was valued at $7.1 billion3. The FTC's concern was that the acquisition would diminish innovation in the U.S. market for multi-cancer early detection (MCED) tests, as Illumina is the only viable provider of DNA sequencing for these tests in the United States3.

After extended legal proceedings, including a Fifth Circuit court ruling in December 2023 that found substantial evidence supporting the Commission's assertion that the deal was anticompetitive, Illumina announced it would divest Grail3.

Divestiture Completion

Illumina successfully completed the divestiture of Grail on June 24, 2024, making Grail a public and independent company4. Following the spin-off, Grail began trading on Nasdaq under the ticker symbol "GRAL" on June 25, 20244. Despite the divestiture, Illumina maintained a minority share of 14.5% in Grail, demonstrating continued confidence in the company's future while providing support through sequencing technology, workflows, and services4.

Keywords

• SEC investigation closure
• Illumina-Grail acquisition
• Antitrust concerns
• FTC complaint
• Grail divestiture
• Cancer detection technology
• Regulatory challenges
• Financial guidance adjustment

Key Facts

• The SEC closed its investigation into Illumina's $8 billion purchase of Grail in May 2025
• The FTC had previously contested the acquisition on antitrust grounds
• Illumina completed the divestiture of Grail on June 24, 2024
• Grail is now an independent company trading under ticker symbol "GRAL"
• Illumina retained a 14.5% minority stake in Grail
• The acquisition and subsequent divestiture followed extensive regulatory challenges

The search results don't contain information about Illumina slashing guidance due to tariffs, so that aspect of the query cannot be addressed with the available information.

Sources:

1. https://endpts.com/illumina-confirms-sec-has-closed-investigation-into-8b-grail-deal/

2. https://endpts.com/sec-expected-to-drop-investigation-of-illuminas-8b-grail-deal/

3. https://www.ftc.gov/legal-library/browse/cases-proceedings/201-0144-illumina-inc-grail-inc-matter

4. https://investor.illumina.com/news/press-release-details/2024/Illumina-completes-the-divestiture-of-GRAIL/default.aspx