Activist Investor Keith Meister Joins Illumina Board Amid Challenges

Activist investor Keith Meister is set to join the board of Illumina, a leading manufacturer of genetic sequencing instruments and related chemical reagents. This development comes as the company navigates through a series of challenges, including stringent antitrust enforcement, a proxy battle with Carl Icahn, and recent geopolitical pressures.

Meister's hedge fund, Corvex Management, first invested in Illumina in 2023 and currently holds approximately 2.5% of the company's shares. According to sources, Meister supports Illumina and its CEO, aiming to focus on increasing revenue and improving profit margins. He advocates for the company to concentrate on execution and achieve predictable, profitable growth.

Scott Gottlieb, the former commissioner of the U.S. Food and Drug Administration, will replace the current chairman, Stephen MacMillan, who is set to retire from the board. Gottlieb's appointment as chairman is part of a broader leadership transition aimed at providing stronger guidance and oversight during this critical phase for Illumina.

Illumina, headquartered in San Diego, has been a global leader in the manufacturing and sales of genetic sequencing instruments and related chemical reagents. The company has faced significant challenges in recent years, including increased antitrust scrutiny, a proxy battle with activist investor Carl Icahn, and recent geopolitical pressures.

Meister, who previously worked for Icahn as a senior executive, has a history of activist investing. He left Icahn's company to launch Corvex Management, which has grown into a multi-billion-dollar hedge fund. In 2023, Icahn initiated a proxy battle against Illumina following regulatory concerns from antitrust authorities in the U.S. and Europe regarding Illumina's acquisition of Grail, a cancer blood test manufacturer.

MacMillan, one of Icahn's allies who joined Illumina's board, was appointed as the non-executive chairman. Francis deSouza, Illumina's CEO who championed the Grail acquisition, left the company, and Jacob Thaysen was eventually selected to lead Illumina. Earlier this month, Illumina lowered its financial projections for the year and announced plans to cut $100 million in expenses. The company's stock has declined by 34% year-to-date.