Keith Meister, founder of activist hedge fund Corvex Management, is set to join the board of Illumina (ILMN.O) as the gene-sequencing firm grapples with regulatory and market headwinds, according to a report by Reuters.

Meanwhile, former US FDA Commissioner Scott Gottlieb will take over as chairman later this week, replacing Stephen MacMillan, an Icahn-backed nominee.

Illumina’s 40% stock decline this year has made it a prime target for activist hedge funds, with Meister’s Corvex Management seeing significant untapped value in the company. Corvex owns approximately 1.07% of Illumina’s shares, according to regulatory filings.

Morningstar analyst Julie Utterback suggested that Meister will likely push for cost-cutting initiatives, margin improvements, and share buybacks to drive shareholder value. Given his history as a former lieutenant of Carl Icahn, Meister’s involvement could signal a broader activist play at Illumina, which has already faced boardroom battles over its direction.

Illumina has been caught in the ongoing US-China trade conflict, with China – accounting for 7% of its sales – banning the company’s genetic sequencers in response to US tariffs. Additionally, US research funding cuts and increased competition from Roche’s gene-sequencing device have weighed heavily on investor sentiment.

Gottlieb, who has been on Illumina’s board since 2020, will step in as chairman at a crucial time as the company navigates these challenges. With hedge fund activists now exerting greater influence, the pressure will be on Illumina’s leadership to deliver a turnaround strategy.