The rumors are now a reality. Abbott Laboratories is acquiring Exact Sciences for $21 billion, marking what could be the biggest medtech deal of 2025. The deal’s announcement comes less than 24 hours after
Bloomberg broke the news
that a potential deal between the two could be in the works.
The Abbott Park, IL-based company said the deal is expected to close in 2Q26. News of the official deal helped shares of Exact jump another 17%. When Bloomberg dropped a report on the rumored deal, shares went up about 25%
Madison, WI-based Exact Sciences is a molecular diagnostics company that specializes in the detection of early-stage cancers. Cologuard, a noninvasive colorectal cancer screening option, is one of the company’s flagship products.
The company also develops Oncotype DX, which informs personalized treatment decisions for patients with breast cancer; Oncodetect, which identifies molecular residual disease (MRD) to help assess the risk of recurrence and guide follow-up care; and Cancerguard, a multi-cancer early detection blood test.
"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 Robert B. Ford, chairman and CEO, Abbott. "Abbott has repeatedly taken on the world's most challenging health issues and made a meaningful impact on the lives of people in areas such as diabetes, cardiovascular disease, and infectious diseases. We're excited to bring Exact Sciences' people and know-how into Abbott so that together, we can take on the global challenge of cancer."
The proposed deal could help boost Abbott’s weakened diagnostics portfolio. The diagnostic sector was at its height during the beginning of the pandemic, and
Abbott
, along with
Hologic
, saw huge boosts in revenue due to extremely high demand for COVID-19 tests.
At the time, analysts dubbed the revenue boosts “COVID cash.” Many diagnostic firms put those COVID cash earnings to good use by making multiple acquisitions.
But as time went on and the demand for
COVID-19 tests waned
, that revenue shrank significantly.
Joshua Jennings, MD, an analyst with TD Cowen, wrote about Exact’s potential impact on Abbott’s diagnostic division in a research note.
“COVID testing roll-offs, USAID defunding, and China VBP pressures have pushed diagnostics into a 3% to 5% organic growth range - well below the unit’s long-term trajectory,” Jennings wrote in a research note.
Exact Sciences is projected to generate more than $3 billion in revenue in 2025, with a high-teens organic sales growth rate. Once the transaction is completed, Exact Sciences will become a subsidiary of Abbott, and Abbott's total diagnostics sales will exceed $12 billion annually.
Jennings went on to write, “Acquiring Exact Sciences could provide an immediate solution to that growth deficit. Based on current assumptions, integrating Exact would add roughly 2.5 percentage points of incremental organic growth to Abbott’s diagnostics segment during the early post-deal period, lifting the business back to ~7% organic growth, essentially restoring the franchise to its historical baseline before pandemic distortions emerged.”
Size of the deal
In the post-pandemic market, there are only a few deals that rival Abbott’s proposed acquisition of Exact Sciences.
BTIG Analyst Marie Thibault listed the deals in a recent research note.
“In terms of size, this potential deal would rival the likes of
Johnson & Johnson’s acquisition of Abiomed
in 2022 and Siemens Healthineers’ acquisition of
Varian in 2021
.”