Replies to post #256476 on Biotech Values

[DewDiligence]

ABT/EXAS—But it will not be accretive to EPS immediately or in the near future.

Slide 12 from today’s CC slide set says the deal will be accretive to EPS in 2028.

https://www.abbott.com/content/dam/corp/abbott/en-us/hub-new/Presentation-Acquisition-of-Exact-Sciences.pdf

[DewDiligence]

ABT CEO response to CC question on competition to Cologuard from blood tests was weak and incomplete, IMO. He should have said that, scientifically, it's all but impossible for a blood test to match the sensitivity/specificity of a stool-based test for detecting colorectal cancer.

[DewDiligence]

Factoid: ABT-EXAS is the biggest healthcare deal since PFE-SGEN.

[DewDiligence]

(ABT)—EXAS Cologuard patents ruled invalid, paving the way for competition:

https://www.businesswire.com/news/home/20260206045746/en/Geneoscopy-Wins-Second-Patent-Trial-and-Appeal-Board-Decision-Invalidating-All-Challenged-Claims-of-Exact-Sciences-746-Patent

Geneoscopy, a private company, has a Cologuard-like test called ColoSense that has not yet been commercialized due to patent litigation by EXAS. With the above ruling by the PTAB, Geneoscopy can now proceed with commercialization.

I do not have an educated opinion on which test is better from a medical standpoint.

ABT, which is buying EXAS in an all-cash deal (#msg- 176971675), is down 0.2% in today’s AH session, so ABT investors evidently think Cologuard competition from ColoSense is not a big deal.

[DewDiligence]

ABT will close EXAS acquisition on 3/23/26:

https://www.prnewswire.com/news-releases/abbott-acquisition-of-exact-sciences-set-to-close-on-march-23-2026-302719347.html

With a nominal deal value of $23B (including ~$2B assumption of debt), ABT-EXAS is the largest healthcare acquisition since PFE-SGEN in Mar 2023.