FTC Brings Illumina and PacBio Merger to a Screeching Halt

The Federal Trade Commission said it is challenging the $1.2 billion-merger between Illumina and PacificBio because it could create a monopoly in the U.S. market for next-generation DNA sequencing.

Omar Ford

December 18, 2019

1 Min Read
FTC Brings Illumina and PacBio Merger to a Screeching Halt
Image by Clker-Free-Vector-Images on Pixabay

There’s trouble brewing for Illumina and its plan to acquire rival PacificBio (PacBio). The Federal Trade Commission (FTC) is challenging the $1.2 billion merger.

The Commission alleges in an administrative complaint that San Diego, CA-based Illumina is seeking to unlawfully maintain its monopoly in the U.S. market for next-generation DNA sequencing (NGS) systems by extinguishing PacBio as a nascent competitive threat.

FTC’s complaint also alleges that the acquisition would harm competition by reducing the combined firm’s incentive to innovate and develop new products. The complaint said PacBio and Illumina drive each other’s innovation, and the acquisition would eliminate that incentive.

“When a monopolist buys a potential rival, it can harm competition,” FTC Bureau of Competition Deputy Director Gail Levine, said in a release. “These deals help monopolists maintain power. That’s why we’re challenging this acquisition.”

FTC said its administrative hearing is scheduled for August 2020.

The deal was first announced more than a year ago and both companies expected the merger to close in mid-2019. Illumina seized on the opportunity to acquire the company because PacBio had the potential to fill an important gap in offerings. For years Illumina has prided itself on using short-read technology to sequence DNA. This means it takes lots of small fragments of DNA and puts them together. However, PacBio is the opposite and has long-read sequencing capabilities, which means it can decode longer pieces of DNA with high accuracy.

About the Author

Omar Ford

Omar Ford is a veteran reporter in the field of medical technology and healthcare journalism. As Editor-in-Chief of MD+DI (Medical Device and Diagnostics Industry), a leading publication in the industry, Ford has established himself as an authoritative voice and a trusted source of information.

Ford, who has a bachelor's degree in print journalism from the University of South Carolina, has dedicated his career to reporting on the latest advancements and trends in the medical device and diagnostic sector.

During his tenure at MD+DI, Ford has covered a wide range of topics, including emerging medical technologies, regulatory developments, market trends, and the rise of artificial intelligence. He has interviewed influential leaders and key opinion leaders in the field, providing readers with valuable perspectives and expert analysis.

 

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