This is a setback for the global DNA sequencing giant. The European Commission announced on Tuesday, September 6, to veto the merger of the American Illumina with its compatriot Grail, a biotech specialized in the early detection of cancer. Brussels estimates that this marriage to 7.1 billion euros would harm competition by stifling innovation and reducing the offer on the market, still emerging but very promising, of blood tests for the early detection of cancers.
Based on a simple blood test, these new kinds of tests, whose global market could exceed 40 billion euros per year by 2035, aim to detect, thanks to genomic sequencing, the signs of different types of cancer at an early stage, before patients even show symptoms. Gold “Illumina is currently the only credible provider of technology to develop and process these tests. With this merger, Illumina would have an interest in preventing Grail’s rivals from gaining access to its technology, or putting them at a disadvantage”justified the European Commissioner for Competition, Margrethe Vestager, when announcing the decision.
Because the DNA sequencing champion has already celebrated his nuptials with Grail. “Never seen” according to the European Commissioner for Competition
Seized in April 2021 by the competition authorities of six Member States, including France, the European Commission launched, on July 22, 2021, an in-depth investigation into the merger of the two American companies. A procedure of which it is customary, but which, until now, had rarely led to such a conclusion. Over the past ten years, only ten mergers, including those of Illumina and Grail, have been blocked by Brussels, out of more than 3,000 unions passed under its caudine forks.
Disillusionment and snub
“We are disappointed by the decision of the European Commission which prohibits us from acquiring Grail”, reacted for his part Charles Dadswell, legal director of Illumina. The legal standoff between the American company and the European Union (EU), however, is still far from over. Illumina said it would appeal the decision.
The Californian, which holds more than 80% of the global DNA sequencing market share, had nevertheless offered guarantees to Brussels. In particular, the company had made a commitment to license part of its patents in order to stimulate competition in the DNA sequencing market, and promised to conclude supply agreements with Grail’s rivals for its platform. -technological form on terms comparable to those passed with Grail. Measures deemed insufficient by the European Commission. “Our investigation showed that the proposed remedies would not have been effective in practice and that they would be easy to circumvent”underlined Margrethe Vestager.
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