Abbott Laboratories has agreed to acquire Exact Sciences Corp. in a deal worth $21 billion, offering shareholders $105 per share.
Exact Sciences, known for its cancer screening test Cologuard, anticipates generating around $3 billion in revenue this year.
The global cancer screening market, valued at over $100 billion last year, is projected to grow 6% to 8% annually as cancer diagnoses rise.
Acquisition Deal Details
Abbott Laboratories to pay $105 per share in the acquisition of Exact Sciences Corp. as they expand into the cancer screening and precision oncology diagnostics market.
Industry Investment
Pharmaceutical companies are heavily investing in cancer diagnostics and treatments due to the rising number of cancer diagnoses globally.
Market Reaction
Exact Sciences' stock surged 17% following the acquisition announcement, reaching just under $101, with Abbott's shares dipping 2% on the day.
- The acquisition signals Abbott's strategic move into the lucrative cancer screening market, valued at $60 billion in the U.S.
- Investors are closely monitoring pharmaceutical companies' efforts in cancer research and innovation, leading to substantial stock price movements like the surge in Exact Sciences' shares.
- The growing cancer screening market presents opportunities for companies like Exact Sciences to capitalize on innovative diagnostics and further expansion.
The acquisition of Exact Sciences Corp. by Abbott Laboratories for $21 billion showcases the significant developments in cancer screening technology and the pharmaceutical industry's commitment to advancing cancer diagnostics and treatments.