Abbott Laboratories Expands Into Cancer Screening With Exact Sciences Acquisition
Abbott Laboratories is set to finalize its acquisition of Exact Sciences, a biotechnology firm based in Madison, by Monday. This significant move marks Abbott’s entry into the cancer screening market, a venture announced following regulatory approvals for the $23 billion transaction.
The Illinois-headquartered Abbott, renowned for its health care and medical devices, disclosed the deal in a statement on Friday. This acquisition integrates Exact Sciences’ expertise, notably their Cologuard colorectal cancer screening test, into Abbott’s expanding portfolio.
Robert Ford, CEO of Abbott, highlighted the strategic benefits of the acquisition, stating, “The addition of Exact Sciences enhances Abbott’s growth profile and strengthens our leadership in diagnostics. This transaction brings a powerful new platform in cancer screening and diagnostics into Abbott, advancing our mission to make care more accessible and give people more control over their health.”
Initially announced in November, both companies have assured that Exact Sciences will continue its operations in Madison, reinforcing their commitment to Wisconsin. Despite recent workforce reductions, with Exact Sciences laying off 4 percent of its employees last year, the company remains a significant player in the region’s economy.
A recent report by the Center for Research on the Wisconsin Economy at the University of Wisconsin-Madison highlighted Exact Sciences’ substantial economic impact. Employing approximately 7,200 individuals globally—half of whom are based in Wisconsin—the company contributes significantly to the state’s GDP.
The report estimates Exact Sciences’ contribution to Wisconsin’s GDP to be between $6 billion and $7 billion, equating to 1.7 percent to 2 percent of the state’s $345.4 billion economy. Even the more conservative figures put the company’s contribution at $4.9 billion, or 1.4 percent of the state GDP.
Zach Brandon, President of the Greater Madison Chamber of Commerce, emphasized the importance of Exact Sciences in the regional economy. In his statement, Brandon remarked, “We are confident that with Abbott’s support, reach and resources, Exact Sciences will continue to attract top talent from across the globe, find innovative solutions to some of health care’s most complex challenges and play a pivotal role in our region’s thriving economy.”
