The medical test-making company Abbott has finalized its acquisition of Exact Sciences, the Madison-based maker of cancer screening and diagnostic tests, it said in a March 23 announcement.
The deal, worth about $23 billion, brings Exact Sciences’ flagship screening test for colorectal cancer, Cologuard, under Abbott’s umbrella. The non-invasive test provides a convenient alternative to a colonoscopy and is used by millions of people every year.
The deal was first announced in November.
“With the legacy and deep expertise of the Exact Sciences team, we’re ready to transform cancer care,” Abbott Chairman and Chief Executive Robert B. Ford said in a statement.
Exact Sciences, which relocated its headquarters to Madison in 2009, has about 7,000 employees, around half of whom are in Wisconsin. It makes and processes Cologuard tests at its labs and other facilities in the state’s capital.
The company has contributed to the area’s strong economic growth over the years and is part of the state’s emerging status as a biotechnology hub. Abbott pledged to maintain its presence in Madison, but did not offer details.
Kevin Conroy, who led Exact Sciences since 2009, will remain in an advisory role, a previous joint statement said. It did not specify for how long.
The deal sets Abbott up to take a larger role in the fast-growing area of cancer screening and precision oncology diagnostics, the company said.
Cologuard was approved by the Food and Drug Administration in 2014 as an alternative to a colonoscopy, which requires bowel preparation, sedation and a clinical visit.
The test can be done at home by collecting a stool sample and mailing it to a lab.
However, the test also produces more false-positive results than other screening methods, potentially leading to more follow-up care. Colonoscopy is considered the gold standard of screening tests and identifies about 95% of colorectal cancers, according to a Harvard Medical School blog post.
Colorectal cancer is the second leading cause of cancer-related death in the United States and is the fourth most common type of cancer, behind breast, prostate and lung cancers, according to the National Cancer Institute.
In 2024, the FDA approved Cologuard Plus, which detects colorectal cancers with greater sensitivity than its Cologuard test and also purports to reduce false positives by nearly 40%, according to Exact.
The company recently reported it was working to develop a blood-based screening test for colorectal cancer, amid pressure from competitors developing those screening methods.
Along with Cologuard, Abbott is adding to its product line Oncotype DX, a test that predicts how likely breast cancer is to spread somewhere else in the body and helps predict whether chemotherapy would be beneficial in early-stage breast cancer patients. Other tests include Oncodetect and Cancerguard.
On its diagnostics side, Abbott also sells lab tests for heart disease and infections, rapid tests for COVID-19, and advanced molecular tests that detect genetic markers and viruses.
Reporter Sarah Volpenhein can be reached at svolpenhei@usatodayco.com or 414-607-2159.
This article originally appeared on Milwaukee Journal Sentinel: Abbott closes $23 billion deal to buy Madison-based Exact Sciences
Reporting by Sarah Volpenhein, Milwaukee Journal Sentinel / Milwaukee Journal Sentinel
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