Abbott, a Chicago-based pharmaceutical company, is acquiring Madison-based biotechnology company Exact Sciences, which will become a subsidiary of Abbott, in a $21 billion deal, the companies announced Thursday.
This acquisition is predicted to grow the sales of both companies and generate more than $3 billion in revenue this year.
“Acquisition will uniquely position Abbott to transform cancer care, advancing earlier detection and optimizing treatment and monitoring to help millions more people live healthier lives,” Abbott said in a statement.
In 2014, Exact Sciences’ noninvasive colorectal cancer screening test, Cologuard, was approved by the FDA. Cologuard analyzes both stool DNA and blood biomarkers, finding 92% of colorectal cancers.
Exact Sciences tested over four million people in over 120 countries in 2023, while Abbott serves 2 billion patients each year around the world.
“[Exact Sciences] is a leader in cancer screening, precision oncology and genetic testing, helping to detect cancer earlier, guide treatment decisions and monitor for recurrence,” Abbott said in a statement.
Exact Sciences CEO Kevin Conroy said joining Abbott would extend the reach of Exact Sciences’s cancer diagnostics, including early detection, to more countries around the world.
“[Abbott’s] portfolio of life-changing technologies spans the spectrum of healthcare, with leading businesses and products in diagnostics, medical devices, nutritionals and branded generic medicines,” Abbott said in a statement.
Exact Sciences would fill the role of cancer diagnostics under Abbott, which currently doesn’t have a cancer diagnostics business. Following the acquisition, Conroy will remain in an advisory role.
In a statement to WPR, Abbott CEO Robert Ford said Abbott has nearly 800 employees in Wisconsin. Ford said this transaction is the largest made in the diagnostic industry.
In August, Exact Sciences laid off 4% of their global workforce and cut 200 Wisconsin jobs, 80 of which were positions at the Madison headquarters. The cuts were focused on human resources, information technology and legal services.
Exact Sciences had 6,500 employees in 2022, with half located in Madison. They embarked on a $350 million expansion to grow the global cancer screening and diagnostics company with a research and development center in Madison.
Abbott said Exact Sciences will maintain its presence in Madison following the deal closure. Conroy said the Exact Sciences lab will remain in Madison.
Due to the close proximity of both companies, both Abbott and Exact Sciences say they have similar “Midwestern values” and are "committed to the state.”
“There are so many deep similarities. Our work ethic, our inspired innovation, the way we value people. Those are strong similarities between our two companies,” Conroy said.
The deal must be approved by Exact Sciences shareholders and regulators before it can close in the second quarter of 2026.
