• Send Us A Tip
  • Calling all Tech Writers
  • Advertise
Wednesday, July 16, 2025
  • Login
TechStory
  • News
  • Crypto
  • Gadgets
  • Memes
  • Gaming
  • Cars
  • AI
  • Startups
  • Markets
  • How to
No Result
View All Result
  • News
  • Crypto
  • Gadgets
  • Memes
  • Gaming
  • Cars
  • AI
  • Startups
  • Markets
  • How to
No Result
View All Result
TechStory
No Result
View All Result
Home Business

Illumina’s CEO Francis deSouza Resigns Amid Mounting Pressure from Regulators

by Indrajeet Giram
June 12, 2023
in Business, Markets
Reading Time: 3 mins read
0
Illumina's CEO Francis deSouza Resigns Amid Mounting Pressure from Regulators

Illumina's CEO Francis deSouza Resigns Amid Mounting Pressure from Regulators

TwitterWhatsappLinkedin

In a surprising turn of events, Francis deSouza, the CEO of gene-sequencing machine maker Illumina, announced his resignation on Sunday.

You might also like

Reddit Rolls Out Age Verification for UK Users Amid New Online Safety Rules

Hackers Take Over Elmo’s X Account, Post Anti-Semitic Slurs and Attacks on Trump

Pentagon Awards Contract to Elon Musk’s xAI Despite Ongoing Grok Chatbot Backlash

This development comes as a victory for activist investor Carl Icahn, who has long been critical of Illumina’s controversial acquisition of Grail, a cancer diagnostic test maker.

With deSouza stepping aside, expectations are growing that Illumina may finally unwind the $7.1 billion Grail deal that faced opposition from antitrust regulators.

Illumina’s decision to repurchase Grail in 2021, despite objections from U.S. and European antitrust regulators, drew intense scrutiny and led to a proxy fight initiated by Carl Icahn.

Icahn argued that the acquisition had cost investors billions of dollars and should be divested.

The proxy battle, which began in March, concluded in May with Icahn winning enough shareholder support to oust the board chair, John Thompson, and appoint his own nominee, Andrew Teno.

Illumina's CEO Francis deSouza Resigns Amid Mounting Pressure from Regulators
source : sandiegouniontribune.com

In response to deSouza’s departure, Illumina’s board has initiated a search for a new CEO and named Charles Dadswell, the senior vice president and general counsel, as interim chief executive.

DeSouza will remain in an advisory capacity until July 31. The market responded positively to the news, with Illumina’s shares rising 2.2% to $204.98 in premarket trading on Monday.

However, the company’s shares have still experienced a significant decline, losing approximately 60% of their value since the completion of the Grail deal in 2021.

The departure of deSouza has raised hopes among investors that Illumina will finally divest Grail. The acquisition has been a major concern for many stakeholders, as it has deterred potential investors from entering the stock.

TD Cowen analyst Dan Brennan believes that with deSouza stepping aside, the likelihood of a Grail exit has significantly increased, providing much-needed certainty for the company’s future.

Illumina CEO Steps Down after Regulatory Hurdles

Carl Icahn expressed his satisfaction with the recent changes at Illumina in a tweet, describing them as a “very positive occurrence.”

He highlighted the new additions to the board, the CEO transition, and the change of the Chairman as significant positives that would drive value for all stakeholders and improve human health. Icahn has previously advocated for the return of former Illumina CEO Jay Flatley.

It is worth noting that deSouza’s resignation was not a foregone conclusion. Despite the proxy vote indicating support for Icahn, deSouza had received more than twice the number of shareholder votes compared to his challenger, which could have provided him with enough legitimacy to retain his position.

However, his departure demonstrates that the concerns raised by investors and Icahn’s campaign for change ultimately influenced the decision.

While some CEOs have managed to hold on to their positions even after facing opposition, such as Occidental Petroleum’s CEO Vicki Hollub, who reached a compromise with Icahn over board seats, there have been instances where CEO departures followed shareholder activism.

For instance, Unilever CEO Alan Jope announced plans to leave three months after hedge fund Trian Fund Management’s Nelson Peltz joined the company’s board last year.

Illumina's CEO Francis deSouza Resigns Amid Mounting Pressure from Regulators
source : economictimes.com

Illumina recently filed an appeal against an order from the U.S. Federal Trade Commission (FTC) that demanded the divestment of Grail due to competition concerns.

The outcome of the appeal remains uncertain, but with deSouza’s resignation, there is a renewed sense of hope that Illumina will address the regulatory concerns and seek a resolution that benefits both the company and its shareholders.

The departure of Francis deSouza as CEO of Illumina marks a significant turning point for the company. It opens the doors for potential changes in leadership and strategy, as well as the possibility of unwinding the controversial acquisition of Grail.

Investors and stakeholders are hopeful that this development will lead to increased value and improved prospects for Illumina.

The influence of activist investor Carl Icahn cannot be overlooked in these developments. His campaign for change at Illumina has been instrumental in bringing attention to the concerns surrounding the Grail acquisition.

By successfully ousting the board chair and installing his nominee, Icahn has shown his commitment to driving value for all stakeholders and advocating for improvements in human health.

Tags: Carl IcahnCEO resignationFrancis deSouzagenomics industryGrail acquisitionIlluminaleadership changeProxy fightregulatory hurdlesshareholder activism
Tweet54SendShare15
Previous Post

UBS completes emergency acquisition of Credit Suisse, gains clout as global wealth player

Next Post

New Minimum Wage Set for App Food Delivery Workers in NYC

Indrajeet Giram

📚 Avid reader 🔋constant learner curious analyzer @ everything 📝Business & Economic Journalist ✍️

Recommended For You

Reddit Rolls Out Age Verification for UK Users Amid New Online Safety Rules

by Harikrishnan A
July 16, 2025
0
Surge in Reddit’s MOON Token Price Following Deflationary Strategy Unveil

Reddit has begun enforcing age verification for users in the United Kingdom in response to the country’s new Online Safety Act. The law, which is set to take...

Read more

Hackers Take Over Elmo’s X Account, Post Anti-Semitic Slurs and Attacks on Trump

by Harikrishnan A
July 16, 2025
0
Hackers Take Over Elmo’s X Account, Post Anti-Semitic Slurs and Attacks on Trump

The official X account of Elmo, one of Sesame Street’s most cherished characters, was hijacked on Sunday by unknown hackers who posted a barrage of hateful and conspiratorial...

Read more

Pentagon Awards Contract to Elon Musk’s xAI Despite Ongoing Grok Chatbot Backlash

by Harikrishnan A
July 16, 2025
0
Pentagon Awards Contract to Elon Musk’s xAI Despite Ongoing Grok Chatbot Backlash

Elon Musk’s AI startup, xAI, has secured a major federal contract, with the U.S. Department of Defense (DoD) announcing it will begin using the company’s “Grok for Government”...

Read more
Next Post
New Minimum Wage Set for App Food Delivery Workers in NYC

New Minimum Wage Set for App Food Delivery Workers in NYC

Please login to join discussion

Techstory

Tech and Business News from around the world. Follow along for latest in the world of Tech, AI, Crypto, EVs, Business Personalities and more.
reach us at [email protected]

Advertise With Us

Reach out at - [email protected]

BROWSE BY TAG

#Crypto #howto 2024 acquisition AI amazon Apple Artificial Intelligence bitcoin Business China cryptocurrency e-commerce electric vehicles Elon Musk Ethereum facebook funding Gaming Google India Instagram Investment ios iPhone IPO Market Markets Meta Microsoft News NFT samsung Social Media SpaceX startup startups tech technology Tesla TikTok trend trending twitter US

© 2024 Techstory.in

No Result
View All Result
  • News
  • Crypto
  • Gadgets
  • Memes
  • Gaming
  • Cars
  • AI
  • Startups
  • Markets
  • How to

© 2024 Techstory.in

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
Are you sure want to unlock this post?
Unlock left : 0
Are you sure want to cancel subscription?