Pharmaceutical company Abbott will buy cancer diagnostics business Exact Sciences for up to US$23 billion (A$35.5 billion), marking its entry into the oncology screening sector.
Exact Sciences flagship cancer screening tests target conditions including colorectal and breast cancer. Abbott will pay $105 per share in cash, the companies said.
"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 Abbott CEO Robert B. Ford.
"Together with Abbott, we can reach more patients, advance earlier detection, and deliver answers that change lives," said Exact Sciences CEO Kevin Conroy. "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.”
The purchase values Exact Sciences at $23 billion, including $1.8 billion in net debt. It is set to close in 2026’s second quarter.
Exact Sciences will become a subsidiary of Abbott after the transaction closes, with Abbott projecting the combined company’s total diagnostics sales will be more than $12 billion each year. Abbott will prioritise international expansion for Exact Sciences’ diagnostic tests, it said.
The deal follows Johnson & Johnson’s purchase of experimental cancer treatment developer Halda Therapeutics this week.
Exact Sciences’ (NASDAQ: EXAS) share price closed at $100.78, well above its previous close at $86.18. Its market capitalisation is $19.07 billion.
Abbott’s (NYSE: ABT) share price closed at $123.97, down from its previous close at $126.15. Its market capitalisation is $215.57 billion.
Related content
