US-based biotechnology coGrail develops DNA sequencing and array-based technologies. (Credit: Grail)mpany Illumina’s Board of Directors has approved the spin-off of DNA sequencing devices developer Grail, as Illumina’s acquisition of Grail faced opposition for three years.
Grail will spin off from Illumina on 24 June 2024 and will be listed on Nasdaq.
Illumina shareholders will retain their current shares of Illumina common stock and will also receive one share of Grail common stock for every six shares of Illumina common stock held.
The biotechnology company will retain 14.5% of the outstanding shares of Grail common stock.
From 12 June, Grail common stock is expected to trade on Nasdaq under the ticker symbol ‘GRAL WI, while Illumina continues to trade on the stock exchange.
Illumina CEO Jacob Thaysen said: “Today’s announcement marks a milestone for Illumina and signals an important step forward for the company, since the divestiture of GRAIL is one of our 2024 priorities.
“As we prepare to lead the next era of genomics innovation, we believe GRAIL will play an important role in advancing the industry and improving human health.
“We will maintain a minority share of 14.5% in GRAIL and remain excited about GRAIL’s breakthroughs in the fight against cancer.
“We also look forward to exploring opportunities where we can support GRAIL’s work with industry-leading technologies and solutions.”
Grail was formed in 2016, as an individual entity to enable cancer screening from a simple blood test, with Illumina as the majority shareholder.
In September 2020, the US biotech company signed agreements to re-acquire the cancer testing provider for a total of $8bn.
Illumina closed the acquisition of Grail in 2021 but, was hit by a €432m ($471m) fine as the transaction did not pass antitrust review by the European Union (EU) regulators.
The transaction also faced opposition from billionaire investor Carl Icahn, who sued Illumina in October for allegedly breaching its fiduciary duties.
