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Republican lawmakers, state attorneys general and several advocacy groups have voiced their support Illumina’s getting developer of Grail cancer tests while the Federal Trade Commission struggles to release agreement.
The groups filed 14 amicus briefs Monday urging the U.S. 5th Circuit Court of Appeals to overturn FTC order that would have forced Illumina to cancel the $7.1 billion Grail deal due to concerns that it would stifle competition. Last week, a San Diego-based DNA sequencing company he appealed agency decision.
Supporters of the deal argued in court filings that the FTC overstepped its authority when it tried to unbundle the merger, which closed nearly two years ago. They added that blocking mergers could harm the development of life-saving technologies.
“Irresponsible power of federal agencies undermines liberty, and overzealous, unfair enforcement of agencies impedes technological progress for the benefit of citizens,” the attorneys general of 12 states said in a statement.
These states are Alaska, Arkansas, Georgia, Idaho, Indiana, Iowa, Kentucky, Louisiana, Nebraska, South Carolina, Utah, and Virginia.
Thirty-four Republican lawmakers offered the grail early screening test, which can detect more than 50 types of cancer through a single blood draw. The test is not approved by the Food and Drug Administration, but has seen limited sales over the past year.
Grail needs Illumina to get regulatory approval and commercialize the test, “required steps to provide the full benefits of these tests to the public and to detect cancer as quickly as possible,” the lawmakers argued.
The FTC declined to comment on the filings.
The deal faced widespread opposition. The executive body of the European Union, the European Commission, blocked acquisition citing similar competition concerns. Illumina appealed that order.
And activist investor Carl Icahnwhich holds a 1.4% stake in Illumina, has launched a proxy fight with the company over the Grail deal.
Illumina shareholders voted late last month to oust its board chairman. CEO Francis deSouza descended on Sunday after weeks of stiff resistance from Icahn.
Icahn’s opposition stemmed from Illumina’s decision to close the acquisition without first getting approval from antitrust regulators.