Exact Sciences to buy Genomic Health for $2.8 billion

[July 29, 2019]   (Reuters) - Cancer diagnostics company Exact Sciences Corp <EXAS.O> said on Monday it will buy healthcare company Genomic Health Inc <GHDX.O> for about $2.8 billion to bolster its cancer testing business.

Under terms of the deal, Genomic Health stockholders will receive $27.50 in cash and $44.50 in Exact Sciences stock, for a total value of $72 per share.

Wisconsin-based Exact Sciences makes non-invasive fecal DNA screening test Cologuard to help diagnose colorectal cancer.

Genomic Health develops and commercializes genomic-based diagnostics tests using its Oncotype IQ platform for various cancers, including breast and prostate.

The deal, expected to close by end-2019, is estimated to yield about $25 million in cost synergies within the third year, the companies said in a statement.

Shares of California-based Genomic Health rose 10.7% to $76.01 in early trading, while Exact Sciences' shares fell 3.3% to $114.

(Reporting by Saumya Sibi Joseph in Bengaluru; Editing by Shailesh Kuber)

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