Illumina's Grail Acquisition Gains Support from GOP Lawmakers and Advocacy Groups Despite FTC Resistance

Republican lawmakers, state attorneys general, and several advocacy groups have expressed their support for Illumina Inc's ILMN acquisition of Grail Inc, even as the Federal Trade Commission (FTC) continues challenging the deal. 

On Monday, these groups filed 14 amicus briefs urging the U.S. 5th Circuit Court of Appeals to reverse the FTC's order, which sought to undo the Grail deal due to concerns about competition suppression.

Illumina appealed the agency's ruling last week, CNBC reported. In their court filings, proponents of the acquisition argued that the FTC had exceeded its authority by attempting to reverse a merger finalized nearly two years ago. 

"In one of the briefs, attorneys general from 12 states expressed, 'Unaccountable federal agency power undermines liberty, and overzealous, unfair agency enforcement impedes technological advancements benefitting citizens' wellbeing.'"

Furthermore, 34 Republican lawmakers highlighted the value of Grail's early screening test, which can detect over 50 types of cancers through a single blood draw. Although the test has not yet received FDA approval, it has generated some sales in the past year. 

The lawmakers argued that Grail requires Illumina's involvement to secure regulatory approval and initiate commercial production of the test.

The acquisition has faced significant opposition, including the European Commission's blockage last year, citing similar concerns about competition. Illumina has appealed that decision. 

Illumina CEO Francis deSouza resigned as Illumina has been locked in a proxy battle with activist investor Carl Icahn over its $7.1 billion acquisition of cancer test maker Grail which has faced regulatory hurdles. 

Price Action: ILMN shares are down 0.58% at $205.63 on the last check Wednesday.