Abbott Laboratories announced a cash purchase of Exact Sciences Corporation at $105 per share, valuing the company at roughly $21 billion in equity and $23 billion in enterprise value after assuming $1.8 billion of net debt. The deal will close in the second quarter of 2026, making Exact Sciences a wholly owned subsidiary while its CEO, Kevin Conroy, will transition to an advisory role.
The acquisition positions Abbott to lift its diagnostics business to more than $12 billion in annual sales and to accelerate the development of next‑generation cancer diagnostics. By combining Exact Sciences’ colorectal cancer screening, precision oncology, and multi‑cancer early detection products with Abbott’s global commercial network, the company aims to capture a larger share of the $60 billion U.S. cancer screening market and to expand access to its pipeline of blood‑based tests.
Exact Sciences is projected to generate over $3 billion in revenue in 2025, with organic sales growth in the high‑teens. In Q3 2025 the company reported $851 million in revenue, a 20% year‑over‑year increase, and an earnings‑per‑share figure of $0.24 that beat the consensus forecast of a $0.03 loss. The strong results were driven by robust demand for its flagship Cologuard colorectal screening test and Oncotype DX breast‑cancer decision‑support platform, as well as disciplined cost management that preserved margins amid a 20% revenue rise.
Investors reacted strongly to the 51% premium paid by Abbott, which was reflected in a significant rise in Exact Sciences’ market valuation. Abbott’s own stock experienced a modest decline, a reaction attributed to the large financial commitment and the assumption of debt associated with the transaction.
Abbott CEO Robert Ford said the acquisition would “bring people and know‑how into Abbott so that together we can take on the global challenge of cancer.” Exact Sciences CEO Kevin Conroy added that the partnership would “reach more patients, advance earlier detection, and deliver answers that change lives,” highlighting the complementary strengths of the two companies.
The deal places Abbott in a stronger position to compete with other diagnostics players such as Guardant Health, while leveraging Exact Sciences’ pipeline of multi‑cancer early detection tests. The U.S. market for cancer screening is estimated at $60 billion, and 55 million adults aged 45‑85 remain unscreened for colorectal cancer, creating a sizable opportunity for the combined entity.
By integrating Exact Sciences’ product portfolio and technology, Abbott expects the transaction to be immediately accretive to revenue growth and gross margin, and to accelerate the commercialization of its next‑generation diagnostics. The acquisition signals a strategic shift toward precision oncology and early detection, aligning with Abbott’s broader goal of expanding its diagnostics footprint beyond COVID‑19 testing.
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