Investing.com -- Illumina shares rose over 2% premarket on Tuesday, following a Wall Street Journal report that activist investor Keith Meister would join the company’s board of directors.
According to the WSJ, Meister’s hedge fund, Corvex Management, holds a 2.5% stake in the gene-sequencing leader. Meister is expected to focus on growth and improved margins.
The board changes, including the appointment of Meister and current board member Scott Gottlieb as chairman, are set to take effect on Friday, the WSJ reports.
Meister’s Corvex Management first invested in Illumina (NASDAQ:ILMN) in 2023 and has been a supporter of the company’s leadership, particularly its CEO, while urging better execution and predictable, profitable growth, said WSJ.
The move comes amid challenges for Illumina, including antitrust concerns and a proxy fight with investor Carl Icahn.
The company also recently faced geopolitical issues, with the U.S.-China tariff conflict affecting its sales.
Earlier this month, Illumina revised its financial outlook, reducing its forecast and announcing $100 million in spending cuts.
Former FDA Commissioner Scott Gottlieb will succeed Stephen MacMillan as chairman. MacMillan, who has been aligned with Icahn in the past, will retire from the board, WSJ added.
Illumina shares are down 34% this year and 33.9% in the last 12 months.