Illumina to Record $1.47 Billion Goodwill Impairment Related to Grail in Q2

Gelonghui June 28 | Illumina, a U.S.-based gene testing company, stated that it would record a goodwill impairment charge of $1.47 billion in the second quarter, related to the recently divested cancer diagnostic test manufacturer, GRAIL. This may lead to an additional impairment charge of approximately $420 million for GRAIL’s ongoing research and development intangible assets (IPR&D). However, the company added that it does not expect significant cash outflows related to these impairments in the future. In December last year, activist investor Carl Icahn noted that GRAIL's higher-than-expected expenditures and delayed testing timelines also forced Illumina to account for a total impairment of $4.7 billion. Regulatory filings submitted by GRAIL indicate that the company anticipates recording a goodwill impairment charge of $889 million in the second quarter and will conduct an interim impairment test on goodwill and indefinite-lived intangible assets. As of March 31, GRAIL held $560 million in intellectual property and R&D-related intangible assets.