Abbott Strikes $21 Billion Deal for Exact Sciences
Acquisition of Cologuard maker marks a strategic pivot into the rapidly growing cancer diagnostics market as Covid-testing revenue wanes.
Abbott Laboratories has agreed to acquire diagnostics firm Exact Sciences for approximately $21 billion, a landmark deal that repositions the healthcare giant as a dominant force in the lucrative cancer screening market.
The cash deal, announced Wednesday morning, values Exact Sciences at $105 per share. The move is a decisive strategic pivot for Abbott, which is moving to capture new growth as revenue from its once-booming Covid-19 testing business recedes.
Investors reacted swiftly to the news. Shares of Exact Sciences (NASDAQ: EXAS) surged nearly 24% in morning trading to $86.18, reflecting the premium offered in the deal. Conversely, Abbott (NYSE: ABT) shares dipped about 3% to $126.15, a common reaction for an acquirer taking on a large transaction.
Strategic Pivot to Oncology
The acquisition brings Exact Sciences' flagship products, the non-invasive colorectal cancer test Cologuard and the Oncotype DX precision oncology tests, into Abbott's extensive diagnostics portfolio. This immediately establishes Abbott as a leader in what it identifies as a $60 billion cancer screening and precision oncology market in the U.S.
The move provides Abbott with a powerful new growth engine. The company's diagnostics division saw sales related to Covid-19 testing plummet from a peak of $3.3 billion in the first quarter of 2022 to just $69 million in the most recent quarter. This acquisition is designed to fill that revenue gap and position Abbott for long-term expansion in a more durable market.
"Exact Sciences' innovation, its strong brand and customer-focused execution are unrivaled in the cancer diagnostics space," said Robert B. Ford, chairman and chief executive officer of Abbott. "Together with Abbott, we can reach more patients, advance earlier detection, and deliver answers that change lives."
Combining Strengths in a Competitive Field
The deal combines Exact Sciences' deep expertise in early cancer detection with Abbott's formidable global scale and commercial reach. This synergy is expected to accelerate the adoption of Cologuard and other diagnostic tests, putting the combined entity in a stronger competitive position against other major players in the diagnostics space like Roche, Hologic, and Thermo Fisher Scientific.
Kevin Conroy, chairman and CEO of Exact Sciences, framed the acquisition as an acceleration of his company's core mission.
"Abbott's culture of innovation and global commercial reach will help accelerate our mission of eradicating cancer and expanding access to our tests worldwide, while delivering immediate and substantial value to our shareholders," Conroy stated in the official announcement. "Our journey has just begun."
Including an estimated $1.8 billion of net debt, the transaction carries an enterprise value of approximately $23 billion. Abbott confirmed the deal will be immediately accretive to its revenue growth and gross margin upon closing.
The transaction is subject to approval by Exact Sciences shareholders and customary regulatory clearances. It is expected to close in the second quarter of 2026, after which Exact Sciences will operate as a subsidiary of Abbott.