What's Happening?
Abbott has announced a definitive agreement to acquire Exact Sciences, a leader in cancer screening and precision oncology diagnostics. The acquisition, valued at approximately $21 billion, will allow
Abbott to enter and lead in the fast-growing cancer diagnostics segments. Exact Sciences is known for its advanced cancer screening and diagnostic solutions, including the Cologuard and Oncotype DX tests, as well as liquid biopsy tests for multi-cancer early detection. The acquisition is expected to be immediately accretive to Abbott's revenue growth and gross margin. The transaction is subject to Exact Sciences' shareholder approval and regulatory approvals, with the closing anticipated in the second quarter of 2026.
Why It's Important?
The acquisition of Exact Sciences by Abbott is significant as it positions Abbott to transform cancer care by advancing earlier detection and optimizing treatment and monitoring. This move is expected to expand access to life-changing diagnostics, helping millions more people detect and manage cancer at its earliest, most treatable stages. The acquisition will also enhance Abbott's growth profile, adding a new vertical to its already high single-digit growth. Exact Sciences' innovation and strong brand in the cancer diagnostics space complement Abbott's existing healthcare portfolio, potentially leading to accelerated innovation and expanded global reach.
What's Next?
Following the acquisition, Exact Sciences will become a subsidiary of Abbott, with its presence maintained in Madison, Wisconsin. Kevin Conroy, CEO of Exact Sciences, will remain in an advisory role to support the transition. Abbott plans to conduct a special conference call to provide an overview of the transaction. The acquisition is expected to close in the second quarter of 2026, subject to shareholder and regulatory approvals. Once completed, Abbott's total diagnostics sales are projected to exceed $12 billion annually, with Exact Sciences contributing significantly to this growth.
