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 value, with total transaction value reaching $23 billion including debt
- Exact Sciences’ 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 after 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 about 21.8% over Wednesday’s closing price of $86.18.
Shares of Exact Sciences rose more than 17% to $101.40 in premarket trading following the announcement. The stock gain reflects investor approval of the buyout terms.
Exact Sciences Corporation, EXAS
The total transaction value reaches up to $23 billion when including Exact Sciences’ estimated net debt of about $1.8 billion. 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 colorectal cancer screening test.
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 contrasts with traditional colonoscopy procedures. Those require bowel preparation, sedation, and a clinical visit.
Colorectal cancer is the second-leading cause of cancer-related deaths worldwide. The home-based screening option has driven strong adoption of Cologuard.
The acquisition also includes Oncotype DX. This test screens for early-stage breast cancer.
Exact Sciences is projected to generate more than $3 billion in revenue this year. The company is growing at a high-teens organic rate.
Financial Impact on Combined Company
Abbott’s diagnostics business will exceed $12 billion in annual sales after the deal closes. This includes Exact Sciences’ revenue contribution.
Abbott’s existing diagnostics portfolio includes lab tests for heart disease and infections. The company also makes rapid tests for illnesses like COVID-19.
The deal helps Abbott offset declining revenue from COVID-19 testing 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 close in the second quarter of 2026.
Abbott made the acquisition announcement Thursday morning. It marks Abbott’s first major push into cancer screening.
The post Exact Sciences (EXAS) Stock: Abbott to Acquire Cancer Diagnostics Company for $21 Billion appeared first on Blockonomi.