Abbott-Exact Sciences Deal Set to Shake Up Diagnostic Market with Cancer-Fighting Acquisition

A diversified global healthcare leader is about to shake up the diagnostic market. On 19 November 2025, news broke that Abbott Laboratories is close to sealing a deal to acquire Exact Sciences. This could be one of the 'very good opportunities out there' that Abbott's CEO Robert Ford referred to during the quarterly earnings presentation.

Abbott's acquisition target is a molecular diagnostics company specializing in the early detection and prevention of various cancers. The deal is still pending, although Exact Sciences can supercharge its Diagnostics division and potentially be the next growth driver.

Why the Deal Matters

Abbott is making a transformative move that could turn its Diagnostics division into a high-growth, specialized cancer care diagnostics unit. Exact Sciences owns Cologuard, a non-invasive colorectal cancer screening test. The market-defining product will provide high-growth revenue streams for Abbott.

In addition to Cologuard, Exact Sciences is focused on precision oncology and treatment guidance. Its Oncotype DX is a portfolio of genomic tests for breast, colon, and other cancers. The high-margin, specialized testing assets would boost Abbott's existing lab and point-of-care diagnostics offerings.

Exact Sciences is also developing and commercializing new tests to expand its reach across the cancer journey. Included in the pipeline are the Multi-Cancer Early Detection (MCED) test, Oncoguard Liver, and Riskguard.

Abbott can use these technologies to perform blood-based tests to detect multiple cancers at early stages, liver tests, and saliva tests to assess hereditary risks for some cancers. For now, Abbott will have to rely on its Medical Devices and Nutrition segments for business growth.

Needs Improvement

The Q3 2025 earnings results did not meet investor expectations. In the three months ended 30 September 2025, total sales increased 6.9% to $11.73 billion compared to Q3 2024.

However, net earnings were essentially flat year over year at $1.64 billion. As expected, Medical Devices achieved double-digit growth, marking its 11 consecutive quarters. On a year-to-date basis (first nine months of 2025), net earnings increased 13.8% to $4.75 billion versus the same period in 2024.

Notably, all five divisions under Medical Devices, from Diabetes Care, Electrophysiology, and Rhythm Management to Heart Failure and Structural Heart, registered double-digit organic growth.

Confident Outlook

CEO Ford said about the earnings report, 'Our third-quarter results demonstrate our ability to deliver consistent, high-quality performance. Our differentiated product pipeline continues to power our performance and positions Abbott to deliver durable long-term value to our shareholders.'

Regarding regulatory approvals, Japan approved TriClip, a first-of-its-kind, minimally invasive treatment option for patients with tricuspid regurgitation, a leaky tricuspid heart valve.

In August, Abbott's Navitor received the CE Mark (European Conformity). It means the transcatheter aortic valve implantation (TAVI) system used to treat people with symptomatic, severe aortic stenosis complies with all applicable European Union regulations.

Ford cites challenging conditions in China for the modest growth in diagnostics sales. Notably, price and volume remain headwinds for Abbott's core lab diagnostic business.

Eye on the Prize

Exact Sciences' stock price rose 23.68% on the rumored buyout. For Abbott, it is the breakthrough it is looking for. It would signal its official entry into oncology diagnostics. More importantly, the $226 billion medical devices company could leverage its strong primary care distribution channels, including sales of the Cologuard cancer screening test.