The news: Abbott is spending $21 billion to buy cancer testing company Exact Sciences, known for its Cologuard colorectal cancer at-home test in a box.

• Along with the Cologuard stool-based test, Exact offers at-home cancer screenings via blood testing. Its multi-cancer blood test Cancerguard launched in September, a month after it acquired colon cancer blood testing company Freenome.

Why it matters: Abbott gains entry into the fast-growing oncology screening and diagnostics market, estimated at $60 billion in the US, per the company's own estimates.

• Abbott is looking to bolster diagnostic sales after a big COVID-19 sales dropoff. It took in more than $16 billion in test sales in 2021 and 2022, but those revenues dropped to $1.6 billion in 2023, and $747 million in 2024.
• Exact’s Cologuard debuted as the first non-invasive colon cancer screening test in 2014 and estimates it will top $3 billion in sales this year.
• Colon cancer rates are increasing, especially among younger people, but screenings are also rising: 33.7% of US adults ages 45 to 49 were screened in 2023 up from 19.7% in 2021, per an American Cancer Society study published in August.
• New direct-to-consumer blood tests to detect cancer from Exact, Guardant, Grail, and others are emerging alongside established doctor-prescribed cancer screenings like colonoscopies for colorectal cancer, mammograms for breast cancer, and low-dose computed tomography (CT) scans for lung cancer.

Implications for marketers: Abbott’s purchase of Exact highlights the move toward consumer-friendly at-home cancer screenings. Both companies have strong D2C marketing track records, making them well-positioned to drive awareness and trust for at-home cancer testing: Abbott has its continuous glucose monitors, FreeStyle Libre for diabetes, and Lingo for consumers, and Exact has its widely recognized Cologuard TV campaigns and branding.

The bigger challenges for increasing usage are around pricing, reimbursement, and the increasing competition.

• Multi-cancer blood tests are expensive and rarely covered by insurance: Exact’s Cancerguard is $689, and Grail’s Galleri costs more than $900.
• Consumer uptake will depend on clear education around accuracy, who should use the tests, and what follow-up care may be required.
• Marketers need to set realistic expectations to avoid confusion and ensure consumers understand both the benefits and limitations of these new tools.