Written by Conor Hale
Illumina will put down a total of $8 billion to reacquire its former spinout Grail, which, after nearly five years on its own, is nearing completion of a simple blood test capable of detecting 50 different cancers in their earliest stages.
Both companies expect it all to come together in 2021: The transaction is slated to close in the second half of next year—consisting of $3.5 billion in cash and $4.5 billion in Illumina stock upfront—while Grail has on its calendar two commercial launches of tumor-screening tests. Illumina has predicted the finished deal will immediately start adding to its bottom line.
The leading manufacturer of DNA sequencing hardware currently owns 14.5% of Grail, and its full takeover promises to plunge Illumina deeper into the clinical testing markets—which the company estimates could top $75 billion by 2035, growing 27% per year.
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