Exact Sciences acquires genomics firm
In what is described as the joining of two leading brands in cancer diagnostics, Exact Sciences has entered into a definitive agreement under which the Madison-based company will acquire Genomic Health, a global provider of genomic-based diagnostic tests based on Redwood City, California.
Under the agreement, which has been approved unanimously by the boards of directors of both companies, Exact Sciences will combine with Genomic Health for $72 per share in a cash and stock transaction valued at $2.8 billion.
The transaction, which is expected to be completed by the end of 2019, will combine Exact Science’s Cologuard colorectal cancer screening test with Genomic Health’s Oncotype DX, a flagship product line of gene expression tests that are used to guide treatment decisions for women with breast cancer. According to Kevin Conroy, chairman and CEO of Exact Sciences, the collective resources and broader platform created by the transaction will enable Exact Sciences to provide existing tests to more people while accelerating the development and launch of future cancer diagnostic tests.
Combined, the two companies are in a position to generate about $1.6 billion in revenue and roughly $1.2 billion in profits in 2020. On the same day the transaction was announced, Exact Sciences reported a 94 percent increase in second-quarter revenue, to nearly $200 million, as more than 13,000 health care providers ordered their initial Cologuard tests and the product’s estimated market share grew to 5.7 percent.
In the second quarter, approximately 415,000 people were screened with Cologuard.