Abbott Makes $23bn Bet on Cancer Screening in its Biggest Deal in a Decade

US healthcare giant Abbott Laboratories has agreed to acquire cancer diagnostics specialist Exact Sciences in a landmark $23 billion deal, marking its largest takeover since 2017 and signaling a decisive push into the fast-growing cancer screening market.

The transaction, which was unanimously approved by both companies’ boards, gives Abbott full ownership of Exact Sciences for $105 per share. This represents a roughly 50% premium to the company’s unaffected price. 

The deal values Exact’s equity at $21 billion and includes the assumption of approximately $1.8 billion in net debt, bringing the enterprise value to $22.8 billion. 

The deal is expected to close in the second quarter of 2026, with this acquisition particularly underscoring Abbott’s strategy to reignite growth in its diagnostics division following a steep drop-off in COVID-19 testing revenue.

Exact Sciences, founded in 1995, has become a leader in non-invasive cancer screening. Its flagship product, Cologuard, screens for colorectal cancer, which is the second deadliest cancer in the US, and has been used more than 20 million times since its FDA approval in 2014.

The company’s wider portfolio now spans precision oncology, genetic testing, and a growing suite of multi-cancer blood tests. These include Cologuard, as mentioned, alongside Cancerguard, a blood test capable of detecting 50 types of cancer, and the Oncoguard Liver Test, used to identify widespread liver cancer in patients with cirrhosis or chronic hepatitis B.

Earlier this month, Exact announced promising results from its ALTUS trial supporting Oncoguard’s use in detecting early-stage hepatocellular carcinoma (a primary type of liver cancer). Exact Sciences is now on track to generate over $3 billion in revenue this year. After closing, the company will operate as an Abbott subsidiary and is expected to help lift Abbott’s annual diagnostics sales above $12 billion.

Strategically, the deal is a great fit for Abbot, as their diagnostics division already produces infectious disease tests, including HIV and tuberculosis, alongside blood glucose monitors for diabetics. 

The surge in COVID-19 testing led to a temporary increase in sales; however, demand has since faded sharply, particularly since 2022. Furthermore, Abbott CEO Robert Ford has repeatedly signalled interest in expanding into cancer diagnostics, describing it as one of healthcare's most significant long-term opportunities.

When announcing the deal, Ford said: “Exact Sciences’ strong brand and customer-focused execution are unrivaled in the cancer diagnostics space, and its presence and strengths are complementary to our own… Together, we can take on the global challenge of cancer.” Structurally, this will see Exact’s long-time CEO, Kevin Conroy, remain in an advisory role to assist with the transition; the company will also continue to operate from its Wisconsin site.

The blockbuster Abbott–Exact transaction comes during one of the busiest periods for large-scale M&A in nearly a decade. According to LSEG data, the number of deals exceeding $10 billion, “megadeals,” this year is 61, just one short of the 2015 record. 

Healthcare has been particularly active. Private equity giants TPG and Blackstone recently agreed on an $18.3 billion takeover of women’s health business Hologic, while Novartis bought biotech firm Avidity Biosciences for $12 billion.

For Abbott, the deal is its largest since the $23.6 billion acquisition of St. Jude Medical in 2017. It represents a bold long-term commitment to diagnostics, even as the company continues to navigate legal claims relating to its infant formula division, allegations it denies.

Regarding the market’s reaction, on the day of the announcement, Exact Sciences' shares jumped 17%, trading at around $101, while Abbott’s stock fell 2.5% to $123, reflecting investor caution over the size of the deal. 

Morgan Stanley is functioning as Abbott’s exclusive financial advisor and is providing fully committed debt financing, while Wachtell, Lipton, Rosen & Katz is providing legal advice. Exact Sciences has also been advised by Centerview Partners and XMS Capital Partners, with Skadden acting as legal counsel.

Altogether, the acquisition positions Abbott to become a major force in cancer diagnostics, a sector expected to see rapid global expansion as ageing populations and earlier screening drive demand. With Exact’s strong and innovative pipeline and Abbott’s international reach, the deal could reshape the competitive landscape in one of healthcare’s most critical fields.