Hua Xia Shi Bao·2025-11-28 10:19Core Viewpoint - Abbott's acquisition of Exact Sciences for $21 billion marks a significant move into the growing multi-cancer early detection market, aiming to enhance its diagnostic business and capitalize on the success of Exact Sciences' flagship product, Cologuard [2][4]. Group 1: Acquisition Details - Abbott announced a cash acquisition of Exact Sciences for $21 billion, with a per-share price of $105, representing a nearly 22% premium over the previous closing price [2]. - This acquisition is Abbott's largest since the $25 billion purchase of St. Jude Medical in 2017, with an estimated enterprise value of $23 billion for Exact Sciences [2]. - The deal is expected to be financed through existing cash and debt, with anticipated annual synergies of approximately $100 million post-transaction completion in Q2 2026 [2]. Group 2: Market Context and Performance - Exact Sciences reported impressive financial results, with Q3 2025 revenue of $851 million, a 20% year-over-year increase, and screening business revenue of $666 million [4]. - The global cancer screening market is projected to grow from $172.3 billion in 2022 to $293.6 billion by 2030, with a compound annual growth rate of about 7% [5]. - Abbott's diagnostic business growth was only 0.4% in Q3 2025, significantly lower than the 17% growth in its medical device segment, highlighting the strategic importance of this acquisition [4]. Group 3: Strategic Implications - The acquisition is seen as a strategic necessity for Abbott's diagnostic business, providing a complete product ecosystem that covers the entire cancer care cycle from screening to monitoring [4][5]. - Exact Sciences' products, including Cologuard and Cancerguard, will benefit from Abbott's extensive global network, facilitating international market expansion, particularly in regions with low penetration [5]. - The acquisition is expected to reshape the competitive landscape of the global cancer early detection industry, potentially increasing Abbott's diagnostic revenue to over $11 billion annually [5]. Group 4: Industry Challenges in China - The Chinese early screening market faces significant challenges, particularly the lack of a supportive payment system, which hampers the adoption of cancer screening technologies [6][8]. - Unlike the U.S., where Cologuard is largely covered by insurance, Chinese policies currently do not support non-treatment cancer screening under national insurance, limiting market growth [6]. - The industry is undergoing a consolidation phase, with companies like NuoHui Health facing severe financial difficulties, highlighting the need for robust product offerings and sustainable business models [7][8].