Exact Sciences and Abbott's $21B Deal: What's the Catch?

Abbott Buys Exact Sciences: Another One Bites the Dust?

So, Abbott's buying Exact Sciences for a cool $23 billion. Big deal. Another day, another corporation swallowing up a smaller company. Are we supposed to be impressed?

The End of an Era (Maybe?)

Exact Sciences, the Madison-based maker of Cologuard – you know, that at-home poop test everyone's talking about – is getting gobbled up. Abbott's making a play for the cancer screening market, and Exact Sciences is their golden ticket. They're saying it'll boost Abbott's diagnostics sales to over $12 billion annually. Great for them, I guess. What about the rest of us?

Kevin Conroy, Exact Sciences' CEO, is spewing the usual corporate drivel about "reaching more patients" and "eradicating cancer." Give me a break. It's about the money, always about the money. He'll stay on in an advisory role, probably raking in even more cash while the rank-and-file employees wonder if they'll still have jobs next year.

And Madison's business community is celebrating this "historic investment." Ofcourse, they are. More money flowing into the area. But at what cost? Will Exact Sciences still be Exact Sciences, or will it just become another cog in the Abbott machine?

The Cologuard Question

Let's talk about Cologuard for a second. It's convenient, sure. Mail in your poop, get your results. But it also has a higher rate of false positives, meaning more people potentially getting unnecessary follow-up procedures. A colonoscopy is still the gold standard, identifying about 95% of colorectal cancers. So, are we prioritizing convenience over accuracy here? Is that really progress? I don't know, maybe I'm just being cynical.

And speaking of tests, I still don't get why airline peanuts cost $7. What's that about?

Exact Sciences also bought Genomic Health a while back, bringing in the Oncotype DX breast cancer test. They've been snapping up companies left and right, trying to expand their portfolio. Now, they're the ones getting snapped up. Circle of life, I guess. Or maybe it's just the circle of corporate greed.

What's Next? Layoffs? More Corporate BS?

The deal's supposed to close in the second quarter of 2026, pending shareholder approval. So, we've got a while to wait and see what happens. But I'm not holding my breath for anything good. Abbott's saying Exact Sciences will maintain a presence in Madison, but we've heard that before, haven't we? How long before the layoffs start? How long before the innovation dries up?

Abbott needs this deal to offset the revenue declines from its COVID-19 testing kits. So, they're betting big on cancer screening. But what happens if Cologuard loses its appeal? What happens if a better test comes along? Will Abbott just dump Exact Sciences and move on to the next shiny object?

TD Cowen analyst Joshua Jennings thinks this could revitalize Abbott's diagnostics business. Maybe. Or maybe it's just another example of corporate consolidation, stifling competition and innovation. I'm leaning towards the latter, ain't gonna lie. Abbott to acquire Exact Sciences for about $21B

Just Another Soulless Merger

This whole thing just feels…hollow. Another company bought out, another promise of innovation and growth that probably won't materialize. It's the same old story, just with a different cast of characters. Wake me up when something real happens.