Core Insights - Abbott is nearing a deal to acquire Exact Sciences Corp for over $13 billion, with an announcement expected soon, causing Exact Sciences' stock to surge nearly 25% in a single day [1] - Exact Sciences reported strong financial performance, with Q3 2025 revenue of $850.7 million, a 20% year-over-year increase, and an adjusted net profit of $48 million, exceeding market expectations [1][2] Financial Performance - For the full year 2024, Exact Sciences achieved total revenue of $2.759 billion, a 10% increase year-over-year, with core screening business revenue of $2.104 billion, up 13% [2] - The company raised its full-year revenue guidance for 2025 to $3.22 billion - $3.24 billion, reflecting a 2.2% increase from previous estimates [2] Financial Health - Exact Sciences has a strong financial position with $789 million in cash and $214 million in marketable securities, and total liabilities of $2.32 billion [3] - The company has optimized its debt structure by converting high-interest debt into lower-rate bonds, reducing interest expenses [3] - R&D expenses reached $117.3 million in Q3 2025, representing a consistent investment of 17%-37% of revenue over the past five years [3] Core Product - Exact Sciences' flagship product, Cologuard, dominates the colorectal cancer screening market, having completed 20 million tests since its launch in 2014 [4] - The screening business, primarily driven by Cologuard, accounts for over 80% of the company's revenue, with Q3 2025 screening revenue of $666.2 million, a 22% increase [4] Acquisition Rationale - The acquisition of Exact Sciences is a strategic move for Abbott to enhance its diagnostics business, which has seen only 0.4% organic growth compared to 17.2% growth in its medical devices segment [5][6] - Analysts note Abbott's financial capability to support large acquisitions, with a leverage ratio of 1.3 and annual free cash flow of $7 billion, theoretically allowing for a $30 billion acquisition [6] - If completed, this acquisition could reshape the competitive landscape of the cancer screening industry and accelerate the adoption of early cancer screening technologies [6]