Breaking: Illumina CEO Francis deSouza Resigns Amid Activist Pressure and Grail Controversy

DeSouza's departure representsCarl Icahn Proxy WarA phased victory. Last month's concluded shareholder vote has led to the ousting of former chairman John Thompson. Although deSouza survived at the time, he did not receive much support.

DeSouza became CEO in 2016, when Illumina was a fast-growing company firmly in control of the DNA sequencing market. Under his leadership, Illumina further expanded its business from research laboratories to hospitals and clinics, and launched new instruments that reduced the cost of DNA sequencing. However, over the past two years, Illumina's $7.1 billion acquisition of cancer diagnostics company Grail has hit a roadblock, with regulatory concerns over emerging market competition and antitrust issues forcing Illumina to consider divesting Grail.

The troubled acquisition is precisely the main target of Icahn's criticism. Icahn believes that the decision to complete the deal despite opposition from regulatory authorities was a mistake and a distraction, although deSouza defended the decision, arguing that Grail is key to the company’s long-term strategy.

Endpoints Exclusive: DeSouza Proposed CEO Resignation to Board Weeks After Shareholder Vote. These discussions remained informal until his official resignation letter was submitted this Thursday. The next 48 hours were intense as the board and DeSouza negotiated the terms of his departure, including how the company would publicly announce the news. The board had considered allowing him to continue as CEO during a nearly two-month transition period until the end of July. However, they ultimately decided that a swift departure was best, and his tenure as CEO would conclude with the announcement's release. Illumina announced the news promptly Sunday morning.

Illumina's New Board of DirectorsCandidates for the new CEO are being sought both internally and externally, with the hope of finding a world-class business leader who can drive progress in healthcare, growth, and shareholder value. Icahn had previously called for former CEO Jay Flatley to return to Illumina.

But anyway, the first major issue the new CEO faces, and one of the biggest questions concerning Illumina's future, is how to consider the "hot potato" Grail?

DeSouza's departure seems to indicate that Illumina's new board of directors has developed a different perspective on whether to continue the fight against regulatory agencies.

When will Illumina decide to spin off Grail?Maybe soon...