Software Configuration Error at Grail Causes Cancer Misdiagnosis Scare; Could It Impact Illumina's Acquisition Plans?

Illumina Inc's ILMN Grail Inc acquisition is reportedly in more hot water when Grail mistakenly sent form letters to 400 patients, suggesting they may have developed cancer.
Galleri, the company's primary blood test for cancer diagnosis, is designed to detect more than 50 different malignancies even before symptoms appear.
Related: FTC Orders Illumina To Divest Grail, Mounts Pressure On Company Amid Proxy Fight With Icahn.
Grail sells Galleri at about $950 per test and markets it to insurers and large employers.
According to an internal company document seen by the Financial Times, 408 patients were incorrectly told they had a signal in their blood suggesting they could have cancer.
Grail said the letters were sent "in error" by its telemedicine provider PWNHealth and that its staff had contacted affected customers to reassure them their test results were wrong.
MassMutual, a U.S.-based life assurer, said a "small number" of its policyholders had been affected and that it had "paused" its pilot.
Principal, another U.S.-based life assurer, said it was reviewing its relationship with Grail following the incident.
"The incorrect letter from PWNHealth was inadvertently triggered by its software configuration issue, which has now been disabled," they added.
Price Action: ILMN shares closed at $207.31 on Friday.