Finally, biotechnology company Illumina (NASDAQ:ILMN) has been fined $475 million by the European Union over its $7.1 billion acquisition of Grail without the prior consent of the European Commission.
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Grail provides early detection tests for cancer and the European Commission has noted that the acquisition would make Illumina a dominant market player which would hinder fair competition.
Illumina, on its part, is challenging the European watchdog’s jurisdiction itself and plans to appeal the fine as well. Shares of the company have tanked nearly 9.2% over the past month amid regulatory challenges, a proxy battle with hedge fund manager Carl Icahn and shake-ups at its top rung.
In a bid to boost efficiency, Illumina also announced a headcount trim in June, and further job cuts are expected in the third quarter as well.
Overall, the Street has a $245.38 consensus price target on Illumina alongside a Moderate Buy consensus rating. This points to a hefty 32.8% potential upside in the stock.
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