The Competition and Markets Authority (CMA) has been investigating the proposed $1.2 billion merger of Illumina, Inc. (Illumina) and Pacific Biosciences of California, Inc (PacBio). The companies are both global suppliers of DNA sequencing systems to organisations across the world, including UK universities, laboratories and research institutes. DNA sequencing systems are used to study genetic variation in humans and other species for purposes such as advanced disease research and drug development.
After completing its initial Phase 1 investigation, the CMA has concerns that the deal could remove potentially the most significant competitive threat to Illumina. Illumina is by far the largest supplier of DNA sequencing systems, both in the UK and worldwide, and the merging businesses are already close competitors. PacBio has also recently released a new, innovative system for DNA sequencing (the “Sequel II” instrument), which means that it is well-positioned to offer stronger competition to Illumina in the future.
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