Abbott acquires cancer diagnostic company Exact Sciences for $21B
Multinational medical device giant Abbott Laboratories announced on Thursday its plan to acquire Exact Sciences, the developer of diagnostic technologies primarily for cancer; though it has also produced tests for COVID-19.
The deal is worth roughly $21 billion—the total of $105 per share of all Exact Sciences common stock. The agreement will still need to be approved by investors and likely won’t close until second quarter 2026.
Once the transaction is finalized, Abbott will have access to new testing equipment and methodology—including Cologuard, a popular at-home test for colorectal cancer that utilizes a stool sample instead of a scope. It was approved by the FDA in 2014.
Abbott said it expects the acquisition to bring an additional $3 billion in revenue each year, meaning its growing diagnostic division will now likely “exceed $12 billion annually.”
“Exact Sciences' innovation, its strong brand and customer-focused execution are unrivaled in the cancer diagnostics space, and its presence and strengths are complementary to our own,” Robert B. Ford, chairman and chief executive officer, Abbott, said in a statement. “Abbott has repeatedly taken on the world's most challenging health issues and made a meaningful impact on the lives of people in areas such as diabetes, cardiovascular disease and infectious diseases. We're excited to bring Exact Sciences' people and know-how into Abbott so that together, we can take on the global challenge of cancer.”
New year, 2 million new oncology patients
The company added that in the U.S. alone, 2 million people are diagnosed with cancer each year. Globally, that figure stands at 20 million. All are potential customers for Abbott as it takes on these new diagnostic tools.
Exact Sciences released an upgrade to Cologuard this year that enhances the ability of the test to identify genetic markers linked to a predisposition for colorectal cancer. Its other popular offering, Cancerguard detects 50 different types—including pancreatic, ovarian, liver, esophageal, lung and stomach—with a simple blood draw.
Despite its success, Exact Sciences has taken on $1.8 billion in debt. Abbott said it plans to absorb it, per the terms of the current agreement.
The buyout will also need to get the go-ahead from regulators before it's finalized.
Chad is an award-winning writer and editor with over 15 years of experience working in media. He has a decade-long professional background in healthcare, working as a writer and in public relations.