Exact Sciences (EXAS) shares soared roughly 20% on Thursday morning after Abbott (ABT) said it’s buying the molecular diagnostics firm in a deal that values it at $21 billion.
Abbott is paying $105 for each EXAS shares, a significant premium on their previous close, as this transaction will grow its presence in the fast-growing cancer diagnostics market.
At the time of writing, Exact Sciences stock is up more than 160% versus its year-to-date low set in April.
Why Exact Sciences Stock Lacks Further Upside
EXAS shares are currently trading just under the deal price ($105), indicating the market has already factored in the entire acquisition premium.
And since Exact Sciences will go private once the ABT deal closes next year in the second quarter, potential for any further upside in this biotech stock is essentially nil.
The only plausible catalyst that could drive it higher from here is a competing bid, but Wall Street analysts see that as a long shot.
In short, for existing shareholders, this is as good as it gets. For prospective investors, the ship has already sailed.
Why EXAS Shares Can’t Attract Competing Bids
According to UBS analysts, a competing bid is unlikely to emerge as there aren’t many contenders who can rival Abbott in terms of being a strategic fit for Exact Sciences.
Why? Because a viable buyer needs a massive primary care salesforce for one, which ABT possesses but most peers lack.
Plus, the end of EXAS’ prior partnership with Pfizer (PFE) suggests therapeutics companies are unlikely to show interest in the first place.
That leaves reference labs and product-oriented companies as potential suitors, but the former buys distresses or small assets only, and the latter generally avoid owing labs to prevent competing with their own customers.
UBS’ explanation further reinforces that this is as good as it gets for Exact Sciences shares.
ABT Deal Has Set a Ceiling for Exact Sciences
Abbott’s decision to pay a meaningful premium for EXAS stock validates the firm’s leadership in non-invasive cancer screening.
However, for investors considering initiating a position at current levels, the risk-reward profile is not favorable heading into 2026.
In conclusion, the ABT deal sets a ceiling for Exact Sciences – not a springboard.
On the date of publication, Wajeeh Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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