Unless Illumina wins its appeal in European Courts, the company will have to pay a $476 million (€432 million) fine over its 2021 acquisition of Grail. Illumina said it closed the deal in 2021 because the timeframe would have expired before the European Commission (EC) could reach a decision on the transaction. The EC accuses Illumina of strategically weighing the risk of a gun-jumping fine against the risk of having to pay a high break-up fee if it failed to takeover Grail. EC said the company also considered the potential profits it could obtain by jumping the gun, even if it were ultimately forced to divest Grail. After the EC ruled against the deal last year, Illumina reportedly put aside $453 million in anticipation of a fine. However, the company is appealing the EC's decision and, if successful, the fine would be nixed. A decision in that appeal is expected in late 2023 or early 2024.
The prescription digital therapeutics (PDT) company, which eliminated 35% of its workforce earlier this year, has scored FDA authorization of its PDT for type 2 diabetes. The authorization creates a new class of diabetes digital behavior therapeutic devices. The PDT is expected to launch in later this year.
And in case you missed our last Medtech in a Minute report...
A mining company in Norway has found up to 70 billion tonnes of phosphate rock in the southwestern part of the country, along with deposits of other strategic minerals like titanium and vanadium, which are used in the aerospace and defense industries. With up to 70 billion tonnes of the rock, and a projected 4,500-meter-deep ore body, Norge Mining estimates it would be capable of meeting global phosphate demand for the next 100 years. The discovery addresses concerns regarding shortages in the raw material that is used to make lithium-ion batteries, which are used to power many medical devices.
While medtech M&A activity has been sluggish this year compared to last year, several recent deal announcements prove that the industry is still open to M&A. Thermo Fisher has agreed to acquire CorEvitas for $912.5 million; ResMed plans to acquire Somnoware; EDP Biotech and New Day Diagnostics intend to merge; and Coloplast has designs on Kerecis, a wound care company in Iceland.