Exact Sciences will acquire diagnostic testing company Genomic Health in a $72 per share, $2.8 billion dollar deal, creating a globally focused cancer diagnostics company in the process.
What you should know:
1. Exact shareholders will own 91 percent of the combined company, with Genomic Health shareholders expected to own the remaining 9 percent.
2. Genomic's flagship product is its Oncotype IQ Genomic Intelligence Platform, which includes the Oncotype DX gene expression line of diagnostic tests.
3. Exact views the deal as a move to combine "two of the strongest brands in cancer diagnostics," according to the release.
4. The transaction was unanimously approved by each company's board of directors. The boards expect it to close by the end of 2019 if it receives regulatory approval.
5. The combined company expects to generate $1.6 billion in revenue, with gross profits around $1.2 billion in 2020.
"Together, with our collective resources and broader platform, we will be able to provide our existing tests to more people, while also accelerating the development and launch of future cancer diagnostic tests," said Exact Sciences CEO and Chairman Kevin Conroy.
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