In a recent move, Abbott has gone ahead and agreed to acquire Exact Sciences, the cancer test maker, for almost $21 billion.
For the unversed, Exact Sciences goes on to make the Cologuard non-invasive screening test when it comes to colorectal cancer. The company also makes tests in order to detect multiple kinds of cancer early and also identify certain molecular residual diseases so as to evaluate the risk of recurrence.
The deal is anticipated to close in the second quarter of 2026, subject to the shareholder and regulatory approvals. Abbott anticipates Exact Sciences to generate over $3 billion in revenue in 2025 and also grow the total diagnostics sales of Abbott to over $12 billion per year post the acquisition.
This acquisition goes on to mark a new foray when it comes to cancer care for Abbott, whose medical device business focuses quite heavily on diabetes as well as cardiovascular disease.
Robert Ford, the CEO, on a call with analysts on November 20, 2025, said that the decision to acquire Exact Sciences goes on to reflect a view that Abbott can very well bring long-term value when it comes to cancer diagnostics.
He added that they are making a pretty prominent move here, which looks more long-term in terms of how one witnesses medical need and also clinical need throughout the global healthcare markets. They know this is a very valuable area, opines Ford.
This deal, apparently, further strengthens the position of Abbott in diagnostics, confirmed Ford, who also added that this is a whole new growth platform that is going to unlock immense opportunities for them.
It is worth noting that cancer screening and precision oncology diagnostics are a $60 billion segment in just the U.S., as per Abbott.
Apart from Cologuard, the product lines of Exact Sciences include the Oncotype DX breast cancer test along with liquid biopsy tests pertaining to multi-cancer early detection as well as molecular residual disease testing.
Abbott remarked that the acquisition is going to be immediately accretive when it comes to its revenue growth as well as gross margin. The shareholders of Exact Sciences are going to receive $105 per share. Abbott anticipates absorbing an estimated $1.8 billion of debt of Exact Sciences.
Acquiring Exact Sciences may revitalize the diagnostics business of Abbott and potentially return the segment to the pre-pandemic growth rates, said Joshua Jennings, the TD Cowen analyst, in a note on November 20.
Puneet Souda, the Leerink Partners analyst, called this transaction a sector-defining event when it comes to diagnostics, apart from benefiting the cancer test maker. The acquisition is indeed the largest that has been announced in the medtech industry so far in 2025.
According to Souda, they see this transaction as positive for the overall Dx sector, as they believe it is going to help validate the sector along with the central lab business model.