(Reuters) – Illumina said on Thursday it will take a goodwill impairment charge of $1.47 billion in the second quarter related to the recently spun-off Grail Inc.
As an independent company, Grail is betting on commercial partnerships with health systems, employers and life insurance firms to power its near-term growth through its flagship cancer-detection test.
Grail’s shares fell nearly 14% after its market debut on Tuesday.
The company’s greater-than-expected expenditures and delays in advancing its tests had also forced Illumina to take impairments that totaled $4.7 billion, activist investor Carl Icahn said in December.
On Thursday, Illumina said it will likely recognize an additional impairment charge of about $420 million for Grail’s in-process research and development intangible asset in the second quarter.
The company also said that it does not expect any material future cash expenses related to these impairments.
(Reporting by Leroy Leo and Nathan Gomes in Bengaluru; Editing by Shinjini Ganguli and Alan Barona)
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