Exact Sciences is purchasing a California company called Genomic Health for $2.8 billion, expanding its reach in the cancer diagnostics market.
The company’s colon cancer test, called Cologuard, will be sold alongside Genomic Health’s Oncotype IQ suite of products, which help guide treatment decisions for cancer patients. The acquisition is expected to be finished by the end of the year.
“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 Kevin Conroy, chairman and CEO of the Madison company.
According to a release, Genomic Health’s product portfolio has been used in treating more than 1 million cancer patients around the world. The company’s most recent performance information shows it had 19 percent revenue growth over the year in the second quarter of this year. The California company estimates its suite of products for oncology and urology have a total available market of $2 billion.
By comparison, Exact Sciences estimates Cologuard has a total available U.S. screening market of $15 billion for people over 50, with a potential for $3 billion more if the recommended screening window is expanded to cover people over 45. The release shows Exact Sciences has submitted an application to the FDA for such an expansion. Read the full story here.