Xinhua/Wang Ying/ Getty Images
Summary List Placement- Exact Sciences soared as much as 33% on Tuesday after it announced it would acquire Thrive Earlier Detection for up to $2.15 billion.
- Thrive Earlier Detection is developing CancerSEEK, a liquid biopsy test that is designed to detect many cancers at earlier stages of disease.
- The deal will include an upfront payment of $1.7 billion in stock and cash, and up to an additional $450 million in potential milestone payments.
- In addition, Exact Sciences said it acquired Base Genomics for $410 million to expand its diagnostics technology.
- Visit the Business Insider homepage for more stories.
Exact Sciences soared as much as 33% on Tuesday to record highs after the diagnostics company said it would acquire Thrive Earlier Detection for up to $2.15 billion in a stock and cash deal.
Thrive Earlier Detection is a diagnostics company developing CancerSEEK, a liquid biopsy test that is designed to detect many cancers at earlier stages of disease. Thrive utilizes machine learning technologies in its cancer detection platform, which is designed to detect cancer before symptoms occur.
In a 10,000-patient study, CancerSEEK detected 10 different types of cancer, including seven with no recommended screening guidelines and with very few false positives, according to Exact Sciences.
"The acquisition of Thrive is a giant leap toward ensuring blood-based, multi-cancer screening becomes a reality and eventually, the standard of care," Exact Sciences CEO Kevin Conroy said.
The deal would expand Exact Sciences product offerings, which currently include Cologuard and Biomatrica.
Exact Sciences will make an upfront payment of stock and cash worth $1.7 billion, and will make an additional $450 million in future payments if certain milestones are achieved. The $1.7 billion payment consists of 65% in Exact Sciences stock and 35% in cash. The deal is expected to close in the first quarter of 2021.
In relation to the acquisition, Exact Sciences said on Tuesday it sold 8.6 million shares at $101 per share to raise $869 million. Part of the proceeds will be used to fund the Thrive acquisition.
In addition to the announced acquisition of Thrive, Exact Sciences said it acquired Base Genomics for $410 million to expand its diagnostics technology.
Markets Insider
NOW WATCH: What it takes to become a backup dancer for Beyoncé
See Also:
- BANK OF AMERICA: Buy these 11 underowned stocks ahead of their earnings reports because they're the most likely candidates to beat expectations in the weeks ahead
- GOLDMAN SACHS: Buy these 13 unloved vaccine stocks that have the potential to spike on positive treatment updates
- 'The road to financial implosion': A notorious market bear says the Fed has set the stage for a 67% stock plunge — and warns of zero-to-negative returns over the next 12 years