Illumina rises as Carl Icahn sees positives in CEO transition (update)
Neilson Barnard
Update 9:20 AM EST: Adds latest stock reaction and comments from Citi and Piper Sandler 
Illumina (NASDAQ:ILMN) added ~5% pre-market Monday as Carl Icahn, who spearheaded a proxy attack against the gene sequencing company, welcomed its leadership change following the resignation of CEO Francis deSouza.
The board of directors accepted the resignation of deSouza as the companyâs CEO and as a Director effective June 11, San Diego, California-based Illumina (ILMN) said on Sunday.
General counsel Charles Dadswell will function as interim CEO until a permanent replacement is found through an executive search.
âWhile obviously I believe the change of CEO should have come meaningfully sooner, it is still a very positive occurrence,â Icahn said of deSouza, who narrowly survived his proxy campaign late last month at the companyâs annual shareholder meeting.
The meeting marked a partial victory for Icahn, who called for the removal of deSouza, citing, among other things, Illuminaâs (ILMN) controversial move to acquire cancer test maker Grail despite regulatory concerns.
At the meeting, two Icahn-backed board nominees failed to win seats, while his other nominee won a majority of votes to replace John Thompson, the company's chairman at the time.
Early this month, Illumina (ILMN) announced Hologic (HOLX) CEO Stephen MacMillan as the non-executive chair of the board.
âThe 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,â Icahn said in a tweet.
However, Citi analyst Patrick Donnelly is not convinced. Donnelly reaffirmed his Sell rating and $180 per share target on ILMN, noting fundamental issues with the company and arguing that he does "not view this as an easy turnaround even under new management."
Piper Sandler had different views. Its analyst David Westenberg reiterated the Overweight rating and $290 price target, citing a positive reaction from the stock in the wake of deSouza's resignation.
As CEO, the investments he has made to ensure the company's long-term prospects "will sustain Illumina's competitive position in sequencing instrumentation and the divestiture of Grail (now more likely soon) will strengthen the base business," Westenberg wrote.
More on Illuminaâs proxy fight

Illumina names Hologic CEO as chair, elects Edwards CFO to board
Carl Icahn seeks to bring Illuminaâs former CEO back â WSJ
Icahn Reacts Audaciously To Illumina's Audacity