Shares of Pacific Biosciences of California Inc. ( (PACB – Get Report) ) were lower after the U.K. antitrust authority expressed concern that the company’s plan to be acquired by Illumina Inc. ( (ILMN – Get Report) ) could hurt competition.
In early November the companies said Illumina, the San Diego provider of DNA-sequencing technologies for research and clinical use, agreed to pay $8 a share for its Menlo Park, California, rival. The deal’s enterprise value is $1.2 billion.
Early in Wall Street trading, Pacific Biosciences shares fell 3% to $6.48. Illumina was up 0.6% at $353.21.
The U.K. Competition and Markets Authority said on Tuesday that an initial inquiry into the deal showed it could remove what might be the most significant competitive threat to Illumina.
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Pacific Biosciences “recently released a new, innovative system for DNA sequencing … which means that it is well-positioned to offer stronger competition to Illumina,” the agency said in a statement.
The authority gave the companies until next week to respond to its questions about the deal, Reuters reported.
If they can’t allay the agency’s concerns, a panel of its members will do an in-depth Phase 2 inquiry, the agency said.
DNA sequencing systems are used to study genetic variation in humans and other species for disease research and drug development, the agency said.
Date: 22/07/2019
Source : The Street