The deal positions Abbott to enter the US cancer screening and precision oncology diagnostics market with products including Cologuard and Oncotype DX tests.
Abbott announced a definitive agreement to acquire Exact Sciences, which will enable it to enter the cancer diagnostics segment. Under the terms of the agreement, Exact Sciences shareholders will receive $105 per common share, representing a total equity value of approximately $21 billion.
The acquisition will add Exact Sciences’ portfolio of cancer screening and diagnostic solutions to its existing diagnostics business. Exact Sciences’ product offerings include the Cologuard test, a noninvasive colorectal cancer screening option, and Oncotype DX, which informs personalized treatment decisions for patients with breast cancer. The company also offers Oncodetect, which identifies molecular residual disease to help assess the risk of recurrence, and Cancerguard, a multi-cancer early detection blood test.
“Exact Sciences’ innovation, its strong brand and customer-focused execution are unrivaled in the cancer diagnostics space, and its presence and strengths are complementary to our own,” says Robert B Ford, chairman and chief executive officer of Abbott, in a release. “Abbott has repeatedly taken on the world’s most challenging health issues and made a meaningful impact on the lives of people in areas such as diabetes, cardiovascular disease, and infectious diseases. We’re excited to bring Exact Sciences’ people and know-how into Abbott so that together, we can take on the global challenge of cancer.”
Once the transaction is completed, Exact Sciences will become a subsidiary of Abbott.
“Together with Abbott, we can reach more patients, advance earlier detection, and deliver answers that change lives,” says Kevin Conroy, chairman and chief executive officer of Exact Sciences, in a release. “Abbott’s culture of innovation and global commercial reach will help accelerate our mission of eradicating cancer and expanding access to our tests worldwide.”
Conroy will remain with the company in an advisory role to support the transition into Abbott. The company employs approximately 7,000 team members.
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