No representations and warranties are made as to the reasonableness of the assumptions. Certain assumptions have been made for modeling purposes and are unlikely to be realized. Changes in these assumptions may have a material impact on the backtested returns presented. General assumptions include: XYZ firm would have been able to purchase the securities recommended by the model and the markets were sufficiently liquid to permit all trading. Backtested results are calculated by the retroactive application of a model constructed on the basis of historical data and based on assumptions integral to the model which may or may not be testable and are subject to losses. The results reflect performance of a strategy not historically offered to investors and does not represent returns that any investor actually attained. Backtested performance is not an indicator of future actual results. The challenges also mean that Illumina will need to continue to hold Grail separately, potentially delaying its plans for the business.ĭisclaimer: The TipRanks Smart Score performance is based on backtested results. Illumina stock remains under a cloud of uncertainty as long as the FTC and EU regulators still have room to challenge the Grail merger. TipRanks data shows that financial blogger opinions are 62% Bullish on ILMN stock, compared to a sector average of 68%. Moreover, Illumina stock is seeing some favorable mentions on financial blogs. In the past 30 days, 2.5% of the best-performing portfolios tracked by TipRanks increased their exposure to ILMN stock. TipRanks’ Stock Investors tool shows that retail investor sentiment is currently Very Positive on Illumina. ILMN stock is a favorite of retail investors. The average Illumina stock price prediction of $252.92 implies over 25.8% upside potential. According to TipRanks’ analyst rating consensus, ILMN stock is a Hold based on four Buys, eight Holds, and two Sells. Wall Street is mostly split about the stock. Illumina shares have declined more than 47.2% year-to-date. Although it went on to close the Grail acquisition last year, Illumina continued to run Grail as a separate business due to pending regulatory and legal issues. Illumina failed in its bid to block EU antitrust regulators from looking into the deal. Depending on the outcome of the appeal, the matter could go to a federal court.Īpart from the FTC challenge, the Illumina-Grail merger has also raised antitrust concerns in the EU. The FTC has an option to appeal the judge’s ruling in its bid to undo the Illumina-Grail merger. Illumina-Grail Merger Faces More Headwinds On September 1, Illumina shares fell 0.51% in the regular session and rose less than 0.20% in extended trading. However, investors showed little excitement toward ILMN stock despite the favorable ruling. Illumina announced on September 1 that the judge had ruled in its favor in the dispute with the FTC over the Grail deal. The issue was referred to an administrative law judge. Despite the FTC’s objection, Illumina went on to close the Grail acquisition in 2021. The regulator argued that the merger would hurt competition and innovation. The FTC rejected Illumina’s plan to reunite with Grail. FTC Objected to the Illumina-Grail Merger In 2020, Illumina decided to reunite with Grail, agreeing to acquire the cancer screening business for about $8 billion in cash and stock. Illumina founded Grail in 2016 but later spun it out as a standalone company in 2017. Grail provides cancer tests, and Illumina is its supplier. Moreover, EU antitrust regulators are also scrutinizing the deal.Ĭalifornia-based Illumina provides genetic sequencing products. The FTC has another option to try to thwart the Illumina-Grail merger. Investors seemed to approach Illumina ( ILMN) stock cautiously despite the company obtaining a favorable ruling against the Federal Trade Commission (FTC) in the Grail acquisition case. Illumina-Grail Deal: Doubts Persist Despite FTC Defeat However, Illumina plans to contest the EU’s decision. The European Union antitrust regulator has blocked the $7.1 billion acquisition deal, claiming that it could hurt competition and innovation in the early cancer-detection blood test market. Update (September 7): California-based life sciences company Illumina ( NASDAQ:ILMN) has hit an iceberg that may compel it to divest cancer-test developer Grail Inc.
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