Illumina to take $1.47 bln goodwill impairment charge related to Grail in Q2
Adds details on Grail's charge in paragraphs 4 to 6
June 27 (Reuters) -Illumina ILMN.O said on Thursday it will take a goodwill impairment charge of $1.47 billion in the second quarter related to recently spun-off cancer diagnostic test maker Grail GRAL.O.
Gene-sequencing equipment maker Illumina said it will likely recognize an additional impairment charge of about $420 million for Grail's in-process research and development intangible (IPR&D) asset in the quarter ended June.
The company, however, added that it does not expect any material future cash expenses related to these impairments.
In December, activist investor Carl Icahn said Grail's greater-than-expected expenditure and delays in advancing its tests had also forced Illumina to take impairments that totaled $4.7 billion.
Grail, which expects to perform an interim impairment test for goodwill and indefinite-lived intangible assets, estimates to record a goodwill impairment charge of $888.9 million in the second quarter, a regulatory filing showed on Thursday.
Grail, which made its market debut on Tuesday, also expects a "significant" impairment charge for IPR&D intangible assets in the second quarter.
As of March 31, Grail had IPR&D intangible assets of $560 million.
Reporting by Leroy Leo and Nathan Gomes in Bengaluru; Editing by Shinjini Ganguli and Alan Barona
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