Abbott and Exact Sciences announced a definitive agreement on Thursday for Abbott to acquire Exact Sciences in a deal worth $21 billion.
Madison’s Exact Sciences is a cancer screening and precision oncology diagnostics company that developed Cologuard and Oncotype DX tests. With the acquisition, the companies plan to “accelerate innovation, expand access to life-changing diagnostics and help more people detect and manage cancer at its earliest, most treatable stages,” Exact Sciences said in a statement.
As of 8:37 a.m. Central, Exact Sciences soared 17.8% to $101.51 while Abbott fell on the news and then recovered some of those losses, down around 1% overall to $125.35.
The Wall Street Journal called the deal “among the biggest in life sciences this year.”
Exact Sciences Cologuard test has become a leader in the market for its noninvasive colorectal cancer screening process.
“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,” Robert B. Ford, chairman and chief executive officer of Abbott, said in a statement.
“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.”
Kevin Conroy, chairman and chief executive officer of Exact Sciences, said with Abbot, Exact Sciences can reach more patients and advance earlier detection.
“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 said in a statement.
Abbott will acquire all outstanding shares of Exact Sciences for $105 per common share in cash at a total equity value of about $21 billion, and an estimated enterprise value of $23 billion. Abbott expects to absorb about $1.8 billion of Exact Sciences’ net debt.
The closing is expected in the second quarter of 2026 and is subject to Exact Sciences’ shareholder approval, and regulatory approvals and other customary closing conditions. The acquisition was already approved unanimously by both companies’ boards of directors.
Exact Sciences is projected to generate more than $3 billion in revenue this year.
Once the transaction is complete, Exact Sciences will become a subsidiary of Abbott. Abbott’s total diagnostic sales will exceed $12 billion annually.
Exact Sciences is expected to maintain its presence in Madison.
