Dive Brief:
- Abbott has agreed to acquire cancer test-maker Exact Sciences for about $21 billion.
- Exact Sciences makes the Cologuard noninvasive screening test for colorectal cancer. The company also makes tests to detect multiple types of cancer early and identify molecular residual disease to assess the risk of recurrence.
- The deal is expected to close in the second quarter of 2026, subject to shareholder and regulatory approvals. Abbott expects Exact Sciences to generate more than $3 billion in revenue this year, and grow Abbott’s total diagnostics sales to more than $12 billion annually after the acquisition closes.
Dive Insight:
The acquisition marks a new foray into cancer care for Abbott, whose medical device businesses focus heavily on diabetes and cardiovascular disease.
CEO Robert Ford, on a call with analysts Thursday, said the decision to acquire Exact Sciences reflects a view that Abbott can bring long-term value to cancer diagnostics.
“We're making a pretty significant move here that is more long term in terms of how we see medical need and clinical need across the global healthcare markets,” said Ford. “We know this is an important area.”
The deal further strengthens Abbott’s position in diagnostics, said Ford, and adds “a whole new growth platform that's going to unlock a lot of opportunities for us.”
Cancer screening and precision oncology diagnostics are a $60 billion segment in the U.S. alone, according to Abbott.
In addition to Cologuard, Exact Sciences’ product lines include the Oncotype DX breast cancer test as well as liquid biopsy tests for multi-cancer early detection and molecular residual disease testing.
Abbott said the acquisition will be immediately accretive to its revenue growth and gross margin. Exact Sciences shareholders will receive $105 per share. Abbott expects to absorb Exact Sciences’ estimated $1.8 billion of debt.
Acquiring Exact Sciences could revitalize Abbott’s diagnostics business and potentially return the segment to pre-pandemic growth rates, TD Cowen analyst Joshua Jennings wrote in a note to clients Thursday.
Leerink Partners analyst Puneet Souda called the transaction a “sector defining event” in diagnostics, in addition to benefiting Exact Sciences. The acquisition is the largest announced in the medtech industry so far this year.
“We see this transaction as a positive for the entire Dx sector as we believe it helps validate the sector and the central lab business model,” Souda wrote.
