Interesting article - Cancer screening blood tests deal21 Nov 2025 11:21
Abbott Laboratories agreed to acquire cancer diagnostics company Exact Sciences in a deal valued at about $21 billion, as Abbott looks to compete in the burgeoning markeExpt for multi-cancer early detection tests.
Exact Sciences shareholders will receive $105 a share. The stock rose 17.9% to $101.60 in morning trading after closing at $86.18 Wednesday.
The transaction is among the biggest in life sciences this year. It gives Abbott exposure to the fast-growing cancer screening market. Exact Sciences offers cancer screening and diagnostic products, including Cologuard, a colorectal cancer screening test.
Exact is one of the companies that has developed blood tests that can detect several types of cancers at early stages. It is competing with Grail, Guardant Health and other companies.
Cancer is one of the biggest and fastest-growing healthcare markets. Scientific advances have pointed to new treatments that have helped turn some cancers into manageable diseases. Advances have also pointed to tests to detect genetic risks of cancer or to detect cancer earlier, when treatment is likely to be more effective.
Abbott, which sells a range of medical products including heart devices and generic drugs, has long had its own diagnostics business, including a widely used at-home Covid-19 test. Its diagnostics sales have sagged as demand for Covid tests faded, and adding cancer diagnostics could boost Abbott’s sales growth while offering potential for cost savings, analysts said.
“Our vision here is really to build the premier cancer diagnostics company in the world,” Abbott Chief Executive Robert Ford said on a conference call with analysts. “I think a combination together with Exact Sciences puts us in a really good position to go after that.”
Abbott shares declined 2% in morning trading. Bernstein healthcare analysts questioned the deal in a research note, saying it had “no real strategic rationale.” They also said the deal’s high price tag could limit Abbott’s ability to use cash for other deals or share buybacks.
Exact Sciences is projected to generate more than $3 billion in revenue this year. With the acquisition, Abbott’s total diagnostics sales will exceed $12 billion annually.
The deal is expected to close in the second quarter of 2026.
After the deal closes, Exact Sciences will maintain its presence in Madison, Wis. and Chief Executive Kevin Conroy will remain with the company in an advisory role.
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