Illumina CEO Francis deSouza, who survived a proxy challenge from corporate raider Carl Icahn, has resigned from the San Diego genetic sequencing pioneer effective Sunday.
In an unusual Sunday morning announcement, the company’s board said it had accepted deSouza’s resignation and appointed vice president and General Counsel Charles Dadswell as interim CEO.
“We thank Francis for his contributions and leadership, and are very excited about embarking on the next chapter of Illumina’s great journey,” said Chairman Stephen P. MacMillan.
“Illumina’s technology remains at the forefront of DNA sequencing and has continued to set the pace for the industry,” MacMillan said. “We are confident Illumina can continue to execute on its goals while we conduct and complete a CEO search process.”
DeSouza survived the challenge to his board seat last month by securing more than twice the number of shareholder votes that Icahn’s candidate received.
However, he continued to face criticism over the $7.1 billion acquisition of cancer test maker Grail despite rulings against the transaction by U.S. and European regulators. Icahn had sought to stop the acquisition.
“It has been the privilege of a lifetime to serve Illumina,” said deSouza. “When I joined this company in 2013, we talked about making the company more clinical, more digital, and more global. On behalf of patients, clinicians and physicians everywhere, I’d like to thank the thousands of Illumina employees who made it happen.”
Analysts said they expect the company’s shares to trade up on Monday morning after deSouza’s resignation.
The Grail deal “has kept a lot of investors out of the stock” TD Cowen analyst Dan Brennan said. “With Francis now stepping aside, I think the certainty of a Grail exit definitely goes up.”
The company’s shares have lost about 60% of their value since completing the Grail deal in 2021. Illumina shares closed at $200.53 on the Nasdaq on Friday.
Icahn in a tweet said he is happy with the recent changes at Illumina and considers them a “very positive occurrence.”
“The new additions to the board, the CEO transition, as well as the change of the Chairman, are significant positives that should drive value for all stakeholders and human health,” he added.
The board said its search for a “world-class business leader” to succeed DeSouza would consider both internal and external candidates.
Reuters contributed to this article.