TLDR
- Exact Sciences is being acquired by Abbott Laboratories for $105 per share in cash, representing a 21.8% premium
- The deal values Exact Sciences at approximately $21 billion in equity, with a total transaction value of $23 billion including debt
- Exact Science’s flagship products Cologuard and Oncotype DX will join Abbott’s diagnostics portfolio
- The company is projected to generate more than $3 billion in revenue this year with high-teens organic growth
- The transaction is expected to close in the second quarter of 2026 following shareholder approval
Exact Sciences will be acquired by Abbott Laboratories in a deal announced Thursday. The transaction values the cancer diagnostics company at approximately $21 billion in equity.
Abbott will pay $105 per share in cash to Exact Sciences shareholders. This represents a premium of approximately 21.8% over Wednesday’s closing price of $86.18.
Shares of Exact Sciences rose more than 17% to $101.40 in premarket trading after the announcement. The stock gain reflects investors’ acceptance of the purchase terms.
Exact Sciences Corporation, EXAS
The total transaction value reaches up to $23 billion when Exact Sciences’ estimated net debt of approximately $1.8 billion is included. Abbott will assume this debt as part of the acquisition.
Exact Sciences brings two major cancer screening products to Abbott. The first is Cologuard, a non-invasive screening test for colorectal cancer.
Home-based cancer screening
Cologuard allows patients to screen for colorectal cancer from home. The test requires only a stool sample that patients mail to a lab.
This is in contrast to traditional colonoscopy procedures. These require bowel preparation, sedation and a clinical visit.
Colorectal cancer is the second leading cause of cancer-related deaths in the world. The home-based screening option has driven strong use of Cologuard.
The acquisition also includes Oncotype DX. This test screens for early stage breast cancer.
Exact Sciences is expected to generate more than $3 billion in revenue this year. The company is growing at a high organic rate for teenagers.
Financial impact on the merged company
Abbott’s diagnostics business will exceed $12 billion in annual sales after the deal. This includes Exact Science’s revenue contribution.
Abbott’s existing diagnostics portfolio includes lab tests for heart disease and infections. The company also makes rapid tests for diseases such as COVID-19.
The deal helps Abbott offset declining revenue from covid-19 test kits. Cancer screening represents a faster growing market segment.
Exact Sciences CEO Kevin Conroy will remain with the company in an advisory role. The company will maintain its presence in Madison, Wisconsin.
The transaction requires Exact Sciences shareholder approval. The deal is expected to be completed in the second quarter of 2026.
Abbott announced the acquisition Thursday morning. It marks Abbott’s first major venture into cancer screening.