Abbott to Buy Exact Sciences, Expands Into Cancer Diagnostics

Abbott Laboratories announces a cash deal to acquire Exact Sciences, the maker of Cologuard and Oncotype DX, in a transaction that values Exact at about $21 billion in equity and roughly $23 billion enterprise value including assumed net debt. Abbott will pay $105 per share in cash, a near 22 percent premium to Exact's recent trading price, and the boards of both companies have unanimously approved the agreement. The companies expect to close the transaction in the second quarter of 2026, subject to shareholder approval and customary regulatory clearances including a Hart Scott Rodino notification and antitrust review.

Exact Sciences is projected to generate more than $3 billion in revenue this year, driven by its noninvasive colorectal cancer screening test Cologuard and its genomic Oncotype DX portfolio for cancer risk assessment and treatment selection. Abbott says the acquisition will raise its total diagnostics sales to over $12 billion annually, immediately enlarging its presence in a fast growing oncology screening market and expanding international access to Exact’s tests through Abbott’s global distribution network.

Abbott frames the deal as a strategic pivot to offset declining revenue from COVID testing, which had become a major but temporary contributor to its diagnostics business during the pandemic. Management says the acquisition will be dilutive to adjusted earnings in 2026 and 2027 and has provided quantified per share dilution guidance, with double digit earnings growth anticipated to resume thereafter. Abbott did not attach a precise timeline for full integration of Exact’s products into its commercial channels.

Market reaction is likely to focus on the premium paid and the operational risks of integrating a company built around specialized cancer diagnostics into a broad based medical technology firm. Analysts warn that the valuation reflects high expectations for continued adoption of screening and precision oncology tools, and that realization of those expectations will depend on reimbursement policies, clinician uptake, and international regulatory approvals. The all cash nature of the deal and the inclusion of assumed net debt in the enterprise value underscore the financing and leverage considerations investors will weigh as Abbott absorbs Exact.

Regulatory scrutiny is a material near term risk. Antitrust authorities will examine whether the combination of Abbott’s sizable point of care and laboratory diagnostics footprint with Exact’s screening and genomic assets could lessen competition. The Hart Scott Rodino process and potential foreign regulatory reviews create a timetable in which closing in mid 2026 is feasible but not guaranteed.

Longer term, the acquisition positions Abbott to participate in secular trends that are increasing demand for early detection and precision treatments as populations age and screening guidelines broaden. For policymakers and payers, the deal highlights pressure points for reimbursement policy and market concentration in diagnostics. For investors, the trade will be judged on whether Abbott can convert Exact’s growth trajectory into sustainable, accretive earnings after the expected near term dilution and the costs of integration.