After over a year away from the healthcare M&A market, Exact Sciences Corp. (NYSE: EXAS) is back with a new acquisition. Last week, the company announced it purchased Cambridge, Massachusetts-based Thrive Earlier Detection Corp., a healthcare company focused on incorporating earlier cancer detection into routine medical care. Thrive is developing CancerSEEK, a liquid biopsy test that is designed to detect many cancers at earlier stages of disease.
Under the terms of the agreement, Exact Science will pay $1.7 billion at closing, consisting of Exact Sciences common stock and 35% in cash. An additional $450 million would be payable based upon the achievement of certain milestones.
Combining Thrive’s CancerSEEK with Exact Sciences’ scientific platform, clinical organization and commercial infrastructure will establish Exact Sciences as a leading competitor in blood-based, multi-cancer screening. By joining with Thrive, Exact Sciences would be well-positioned to compete in a significant U.S. market, estimated to be at least $25 billion.
And a competitive market it is. Cancer diagnostics have been the focal point for a number of acquisitions in 2020, a correlation to the demand for oncology firms in the Biotechnology sector, based on search results in the HealthCareMandA.com Deal Database. Back in June, Invitae Corp. (NYSE: NVTA) purchased ArcherDX for $833.3 million. ArcherDX offers genomic sequencing services and testing solutions to help develop and deliver personalized and precision diagnostics and monitoring in the field of oncology.
In January, Todos Medical Ltd. (OTCMKTS: TOMDF) bought Provista Diagnostics, an in-vitro diagnostics company with a CLIA/CAP certified lab that develops and commercializes the proprietary Videssa blood test for breast cancer, for undisclosed sum.
