Illumina appoints new CEO after battle with investors

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Ilumina has appointed Jacob Thaysen as its new chief executive, as the biotech group seeks to rebuild its leadership team following a bitter battle with activist investor Carl Icahn.

The world’s largest gene-sequencing company said Tuesday that Sessen, who previously ran Agilent Technologies’ life sciences and applied markets group, will start as chief executive on Sept. 25.

Danish executive Thaysen, 48, faces a formidable challenge in turning around Illumina’s financial performance as the company remains mired in disputes with European Union and U.S. competition regulators.

Former Illumina Chairman John Thompson was ousted from the board in May after a dispute with Icahn, who criticized management for completing an $8 billion acquisition of cancer-testing company Grail without regulatory approval.

Francis deSouza, the former chief executive of Illumina, resigned shortly after the company was fined 432 million euros in July for closing the deal without approval from European officials.

Last month, Illumina revealed that the SEC was investigating its acquisition of Grail. The agency has required certain members of Illumina and Grail management to provide statements and disclosures related to “conduct and compensation,” according to the company’s filing.

Illumina is embroiled in multiple legal appeals against the European Commission and the Federal Trade Commission seeking to overturn a divestment order from its 2021 acquisition of Grail. A protracted legal battle and growing competition in the genomics industry has led investors to question the company’s strategy to diversify into cancer diagnostics.

Illumina’s market value has plummeted from $75 billion in August 2021 when it acquired Grail to just over $26 billion on Tuesday.

Investors were wary of the appointment, with Illumina shares falling 3 percent to $161.80 at the open on Tuesday.

But some analysts welcomed Tyson’s appointment to succeed interim chief executive Charles Dardswell.

Thaysen has the technical skills and experience to run Illumina, said Evercore ISI analyst Vijay Kumar.

“He has a core (genomics) background, which in our view is critical considering that the previous hire, deSouza, was out of the industry,” Kumar said. “Tyson is a top-five life sciences One of the top leaders of the company, well known in the life science and technology investor community . . . this should help with communication.”

Once Tyson becomes CEO, Dardswell will resume his role as senior vice president and general counsel.