Sunny Isles Beach, Florida, April 5, 2023 — Today, Carl C. Icahn released the following open letter to the shareholders of Illumina, Inc. (NASDAQ: ILMN).
Q1 2023 hedge fund letters, conferences and more
April 5, 2023
Dear Fellow Illumina Shareholders:
We are not surprised by Monday’s events. First, the FTC has joined the EU by deciding to block and force the unwind of Illumina’s acquisition of GRAIL. Second, Illumina’s directors and CEO Francis deSouza have decided to continue their long history of appealing (and appealing again) in the hope of one day, at great expense, winning an almost impossible battle. Our major concern as a large shareholder is that this multi-year battle will consume hordes of cash and go on for years, luxuries that Illumina does not have. Even in the best case for Mr. deSouza, the ability to own GRAIL will be a pyrrhic victory, as the core business deteriorates, and customers defect to rival sequencing platforms.
In the last few years, CEO Francis deSouza has allowed our potentially great company to deteriorate. He has forced out many of Illumina’s talented employees. He has handpicked members of his board, who he believed would blindly follow him and overlook the fact that he knew very little about the genetics industry, while removing those who were a threat to his longevity. Illumina’s revenue growth has deteriorated a staggering 90% during his tenure at the company. His shareholder-funded GRAIL adventure is a desperate “Hail Mary” power grab to attempt to reverse the declining fortunes of Illumina. It is his second major M&A failure since he has led Illumina. Not only has this folly cost the shareholders $50 billion in value but it should be realized that Illumina does not have the financial wherewithal to continue this fight. Do not be fooled when Mr. deSouza says that this will be a short battle. We believe the board of directors should dismiss Mr. deSouza immediately and bring back Jay Flatley (or someone else on his level) as CEO. And most importantly, for the sake of both Illumina and GRAIL, these companies should be separated immediately to protect the long term growth prospects and viability of each entity.
Sincerely yours,
Carl C. Icahn
