Exact Sciences Soars 14% on Report of Abbott Takeover Interest
Shares in the $13.2 billion cancer diagnostics firm were halted after a report named healthcare giant Abbott Laboratories as a potential acquirer, signaling a major strategic push into oncology.
Shares of Exact Sciences Corp. (EXAS) surged nearly 14% in afternoon trading Tuesday before being halted, following a report that healthcare giant Abbott Laboratories (ABT) is considering an acquisition of the cancer diagnostics company.
The Wisconsin-based firm, known for its non-invasive Cologuard colorectal cancer test, saw its stock jump $9.72 to $79.40, a new 52-week high. The move pushed its market capitalization to over $13.2 billion. Conversely, Abbott's shares fell 2.7% to $126.43, a typical reaction for a potential acquirer facing a significant cash or stock outlay.
The potential deal, first reported by Bloomberg, signals Abbott's ambition to make a substantial entry into the rapidly expanding and highly competitive cancer screening market. While neither company has officially commented on the speculation, the move would strategically align with Abbott's established leadership in medical devices and diagnostics, which includes diagnostics for infectious diseases, diabetes, and cardiovascular conditions.
Exact Sciences has become a significant player in healthcare by revolutionizing colorectal cancer screening. Its flagship product, Cologuard, offers an at-home alternative to the more invasive colonoscopy and has been a primary growth driver. The company's screening division, which is dominated by Cologuard, is projected to generate between $2.51 billion and $2.52 billion in revenue for 2025, representing growth of approximately 20%.
Acquiring Exact Sciences would give Abbott immediate access to this revenue stream and a strong brand in the oncology space. Beyond Cologuard, Exact Sciences possesses a valuable portfolio of precision oncology tests, including the Oncotype DX tests, which help guide treatment decisions for breast, colon, and prostate cancer. This suite of products would significantly bolster Abbott's diagnostic offerings and position it as a leader in a market projected to reach nearly $355 billion by 2034, according to Precedence Research.
The market reaction underscores the perceived value of Exact Sciences' platform. Prior to the report, analysts held a consensus price target of around $82 for the company's stock, with the majority maintaining a 'Buy' or 'Strong Buy' rating. The surge on Tuesday brought the stock price nearly in line with that consensus, suggesting investors see the strategic logic in a potential tie-up.
For Abbott, a deal would represent a decisive step to compete more directly with other giants in the diagnostics field who are also investing heavily in oncology. Companies like Roche and Illumina have made significant inroads, and the landscape is filled with innovative smaller firms focused on liquid biopsies and multi-cancer early detection technologies.
An acquisition would also allow Abbott to leverage its immense global sales and distribution network to accelerate the adoption of Cologuard and other Exact Sciences tests internationally. The diagnostics firm recently launched Cologuard Plus, an enhanced version designed to improve accuracy and reduce false positives, which could see faster market penetration under Abbott's ownership.
While the talks remain speculative, the logic of the combination is compelling for Wall Street. It offers Abbott a pathway into a high-growth sector with a market-leading product and a robust pipeline. For Exact Sciences, it provides the scale and resources of a global healthcare leader. Investors will now be watching closely for any official confirmation or denial from the companies as the market digests the implications of what could be one of the year's most significant healthcare deals.