Abbott recently announced that it agreed to acquire Exact Sciences for approximately $21 billion to enter the fast-growing cancer diagnostic segment. Under the terms of the agreement, Abbott will acquire all outstanding shares of Exact Sciences for $105 per common share in cash. Commenting on the acquisition, Robert B. Ford, chairman and chief executive officer of Abbott, said:
“We’re making a pretty significant move here that is more long term in terms of how we see medical need and clinical need across the global healthcare markets.”
Exact Sciences focuses on the early detection of cancer and supporting personalized treatments. Its product offerings include the Cologuard® test, a non-invasive colorectal cancer screening option, and Cancerguard™, a multi-cancer early detection blood test. According to the press release, the closing of the deal is expected to take place in the second quarter of 2026 and is projected to increase Abbott’s total diagnostic sales to more than $12 billion annually.
This news comes as a recent report by Precedence Research estimated the global market for next-generation cancer diagnostics, a category of advanced diagnostic techniques that go beyond traditional methods, to double in value in the next ten years, increasing to more than $38 billion by 2034.
This increase is in line with the increase in the overall cancer diagnostic market, which is projected to more than double over the next decade to about $354 billion by 2034.
As evident by the increase in the value of cancer diagnostic market, there are major commercial opportunities for diagnoses of various forms of cancers, driven by a rising ageing population and the growing prevalence of certain cancers. However, this growth is expected to be constrained by the high cost and budgetary constraints associated with cancer diagnostics.
Tags
Abbott Laboratories, Cancer, Diagnostics
