The Motley Fool·2025-11-30 07:05Core Insights - Abbott Laboratories is making a significant move by acquiring Exact Sciences for approximately $21 billion in cash, enhancing its position in the cancer diagnostics market [3][4] - The acquisition of Exact Sciences, known for its Cologuard test for colorectal cancer, opens access to a large untapped market, with over 55 million Americans aged 45 to 85 yet to undergo screening [4][5] - Abbott's strong resources and international presence are expected to accelerate the growth and reach of Exact Sciences' products globally [7] Company Overview - Abbott Laboratories has a diversified product portfolio and a strong track record of innovation and dividend payments, making it a reliable player in the healthcare sector [1][8] - The company has demonstrated resilience in generating revenue and profits, even during economic challenges [8] Financial Performance - In the third quarter, Abbott's revenue from its diabetes care unit, primarily from the FreeStyle Libre continuous glucose monitoring system, increased by 19.3% year over year to $2.1 billion [9] - Total sales for Abbott grew by 6.9% year over year to $11.4 billion [9] Market Potential - The cancer diagnostics market presents a lucrative opportunity, as cancer remains a leading cause of death worldwide, and there is significant room for growth in screening and diagnostics [8][11] - Abbott's continuous glucose monitoring technology has a vast potential market, with fewer than 1% of the world's diabetics currently having access to such technology [10] Dividend History - Abbott Laboratories is recognized as a Dividend King, having raised its dividends for 53 consecutive years, making it an attractive option for income-focused investors [11]