TLDR
- Abbott Laboratories is purchasing Exact Sciences for $105 per share in a $21 billion cash deal
- Shareholders receive a 21.8% premium over the previous closing price of $86.18
- Cologuard colorectal cancer test and Oncotype DX breast cancer test will join Abbott’s portfolio
- Exact Sciences generates over $3 billion in annual revenue with high-teens growth rates
- Deal expected to finalize in the second quarter of 2026 pending shareholder approval
Exact Sciences agreed to be acquired by Abbott Laboratories in a cash transaction announced Thursday. The deal values the cancer screening company at $21 billion in equity.
Abbott will pay Exact Sciences shareholders $105 per share. This price represents a 21.8% premium over Wednesday’s closing price of $86.18.
Shares of Exact Sciences jumped 17% to $101.40 in premarket trading. The stock movement reflects positive investor sentiment toward the acquisition terms.
Exact Sciences Corporation, EXAS
The total deal value reaches $23 billion when including debt. Abbott will assume approximately $1.8 billion in net debt from Exact Sciences.
Cancer Screening Products Drive Acquisition
Exact Sciences brings two key cancer screening products to Abbott. Cologuard is a non-invasive colorectal cancer screening test completed at home.
Patients collect a stool sample and mail it to a lab for analysis. This eliminates the need for colonoscopy procedures that require sedation and clinical visits.
Colorectal cancer ranks as the second-leading cause of cancer deaths globally. Cologuard’s convenience has made it a popular screening option.
The acquisition includes Oncotype DX for early-stage breast cancer screening. Together, these products position Abbott in the fast-growing cancer diagnostics market.
Exact Sciences projects more than $3 billion in revenue this year. The company maintains high-teens organic growth rates.
Abbott’s Diagnostics Business Expands
Abbott’s diagnostics division will surpass $12 billion in annual sales after closing. This includes the revenue contribution from Exact Sciences.
The acquisition marks Abbott’s first major move into cancer screening. It represents one of Abbott’s largest deals in nearly a decade.
Abbott’s current diagnostics portfolio includes heart disease tests and infection screenings. The company also produces rapid COVID-19 tests.
Adding cancer screening helps offset declining COVID-19 testing revenue. The cancer diagnostics market offers stronger growth prospects going forward.
Exact Sciences CEO Kevin Conroy will stay on in an advisory capacity. The company will keep its headquarters and operations in Madison, Wisconsin.
Deal Timeline and Approval
The transaction requires approval from Exact Sciences shareholders. Abbott expects to complete the acquisition in the second quarter of 2026.
The $105 per share cash payment provides immediate liquidity to shareholders. No stock consideration is included in the deal structure.
Abbott announced the acquisition Thursday morning before market open. Exact Sciences shares responded with strong gains in premarket trading.
The deal closes a chapter for Exact Sciences as an independent company. Abbott gains entry to the cancer screening market through the acquisition.
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