Illumina (NASDAQ:ILMN) is set to face off with EU antitrust officials following reports that the Biotechnology company will be ordered to sell its Grail Unit, The Financial Times reported. The recent action by the EU regulator adds to a growing list of other penalties against the company following its acquisition of the cancer detection test maker in 2021.
Citing sources close to the development, the report noted that the order to sell the company from Brussels will come next week, with other sources saying it could be delayed. Earlier in July, Illumina was slammed with a record 432 million euro fine ($476 million) by the EU over the acquisition deal.
The genetic testing company completed the takeover of Grail in a deal worth close to $8 billion in August 2021. EU regulators said the deal, which Illumina carried out without proper regulatory approval, falls short of certain standards.
However, reports suggest Illumina plans to hold on tight to Grail and will appeal any regulatory action to force it to sell the company. Back in the U.S., the Securities and Exchange Commission (SEC) has also commenced an investigation into the acquisition, requesting documents and asking questions about the companies’ management.
What is the Future of Illumina Stock?
Turning to Wall Street, analysts have a Hold consensus rating on ILMN stock based on seven Buys, six Holds, and three Sells assigned in the past three months, as indicated by the graphic above. Nevertheless, the average price target of $199.07 per share implies a 44.94% upside potential.
