Exact Sciences to Buy Genomic Health for USD 2.8 Billion | Financial Buzz

Exact Sciences to Buy Genomic Health for USD 2.8 Billion

Cancer screening company, Exact Sciences Corp. (NASDAQ: EXAS) said it will buy Genomic Health, Inc. (NASDAQ: GHDX) in a deal valued at USD 2.8 Billion. Under terms of the transaction, Genomic Health shareholders will receive USD 27.50 in cash and USD 44.50 in Exact Sciences stock, for a total value of USD 72 per share.

The merger, expected to close by the end of the year, will join cancer diagnostics brands Cologuard and Oncotype DX. Cologuard, made by Wisconsin-based Exact Sciences, is an at-home colon cancer screening test. Genomic Health produces and commercializes genomic-based diagnostic test Oncotype DX, which analyzes tissue and predicts how likely certain types of cancer are to return.

The two companies expect the combined their business to generate revenue of about USD 1.6 Billion in 2020. Additionally, the new healthcare company is estimated to yield about USD 25 million in cost synergies within the third year following close.

“Uniting the best minds and molecular diagnostics capabilities will advance the fight against cancer. Combining industry pioneers Exact Sciences and Genomic Health is a pivotal step toward building the leading cancer diagnostics company in the world,” said Kevin Conroy, Chairman and CEO of Exact Sciences. The combined company will have a presence in more than 90 countries. This includes a reach across primary care, oncology, OB/GYN, gastroenterology, and urology to support cancer diagnostics research.