Abbott today announced a deal to buy Exact Sciences, a company specializing in cancer diagnostics segments.
Under the terms of the agreement, Exact Sciences shareholders will receive $105 per common share, representing a total equity value of approximately $21 billion and an estimated enterprise value of $23 billion.
Exact Sciences' product offerings support patients and their healthcare providers before, during and after a cancer diagnosis. The company focuses on cancer screening, precision oncology and genetic testing.
Its product offerings include the Cologuard test, a non-invasive colorectal cancer screening option; Oncotype DX, which informs personalized treatment decisions for patients with breast cancer; Oncodetect, which identifies molecular residual disease (MRD) to help assess the risk of recurrence and guide follow-up care; 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," said Robert B. Ford, chairman and chief executive officer, Abbott. "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."
"Together with Abbott, we can reach more patients, advance earlier detection, and deliver answers that change lives," said Kevin Conroy, chairman and chief executive officer, Exact Sciences. "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. I want to thank the 7,000 Exact Sciences' team members for their extraordinary work and dedication — our journey has just begun."
Exact Sciences is projected to generate more than $3 billion in revenue this year, with a high teens organic sales growth rate. Once the transaction is completed, Exact Sciences will become a subsidiary of Abbott, and Abbott's total diagnostics sales will exceed $12 billion annually.
Following the closing, Exact Sciences will maintain its presence in Madison, Wisconsin. Kevin Conroy will remain with the company in an advisory role to support the transition into Abbott.
