The manufacturer of machines to aid in the sequencing of genes, Illumina Inc., announced to pay $7.1 billion for Liquid-Biopsy test producer Grail in both cash and stock. The funds will be used for the development of a blood test that undertakes to spot the cancerous cells at an early stage, as stated by WSJ.
- The deal is likely to thrust Illumina more into clinical applications of its gene sequencers and related products and services.
- The deal is expected to be announced on Monday for the part of Grail Inc. that is not owned by Illumina already. It will push Illumina to indulge in the applications of its gene-sequencing technology all the way to the diagnosis and treatment of cancer patients. It will target a potential market of multibillion-dollar.
- Grail Inc., which was founded by Illumina four years ago, now owns a large stake in the company. According to the terms of the agreement between the parties, Grail owners are likely to get $3.1 billion in shares and cash. The remaining $4 billion will go to Illumina for the gene-sequencer maker, as said by the people.
The owners will be entitled to get additional stock or cash, as well as to receive contingent value rights to the stipulated portion of the annual revenue of Grail for the next 12 years.