Shares of Exact Sciences (EXAS +0.97%) climbed on Thursday after the medical diagnostics specialist agreed to be acquired by Abbott (ABT 1.61%) for $21 billion.
As of 2:30 p.m. EST, Exact Sciences' stock price was up more than 17%.
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Teaming up to tackle cancer
Under the terms of the deal, Exact Sciences' stockholders would receive $105 per share in cash. The takeover offer represents a nearly 22% premium to the stock's closing price on Wednesday.
"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," Exact Sciences CEO Kevin Conroy said in a press release.
NASDAQ: EXAS
Key Data Points
Purchasing Exact Sciences would accelerate Abbott's push into the $60 billion U.S. cancer screening and diagnostics industry. Exact Sciences is a leader in this rapidly expanding market, with its noninvasive Cologuard colorectal cancer screening test and recently launched Cancerguard, the first commercially available multi-cancer early detection test.
"Exact Sciences' innovation, strong brand, and customer-focused execution are unrivaled in the cancer diagnostics space, and its presence and strengths are complementary to our own," Abbott CEO Robert Ford said.
The deal is projected to close in the second quarter of 2026, subject to regulatory and shareholder approval.
Targeting more lives saved
Roughly 2 million Americans and 20 million people across the world are diagnosed with cancer every year. Worse still, these numbers are projected to rise in the years ahead.
Abbott and Exact Sciences aim to help doctors detect cancer earlier, so treatments can be more effective.
"Together with Abbott, we can reach more patients, advance earlier detection, and deliver answers that change lives," Conroy said.
