Yahoo Finance Gene-sequencing group Illumina sees $1.47 bn Q2 impairment charge linked to Grail
Investing.com -- Gene-sequencing firm Illumina (NASDAQ:ILMN) said it would take goodwill impairment charge of $1.47 billion in its second quarter linked to its recently spun-off cancer diagnostic test manufacturer Grail (NASDAQ:GRAL).
In a securities filing on Thursday, Illumina added that it expects to recognize an extra quarterly charge of $420 million related to Grail's in-process research and development (IPRD) assets.
But Illumina noted that it does not anticipate any other "material future cash expenditures" connected to these impairments.
Grail, which made its market debut earlier this week, said in a separate filing that it will book an estimated goodwill impairment charge of $888.9 million and a "significant" charge for IPRD assets.
Last year, U.S. trade regulators ordered Illumina to divest Grail, arguing its $8 billion purchase of the business would dent competition in the market for possibly life-saving cancer testing.
European Commission antitrust authorities also previously slapped a 432 million euro fine on Illumina for implementing a merger with Grail without the bloc's permission.
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