Exact Sciences and Genomic Health, two of the largest companies in the cancer diagnostics market, are merging. The Madison, WI-based company said it will acquire Genomic Health for $72 per share in a cash stock transaction valued at $2.8 billion. The deal was signed off on by both companies and is expected to close by the end of 2019.

The merger will bring together Exact Sciences’ Cologuard and Genomic Health’s Oncotype DX, which the companies said will provide a robust platform for continued growth. With this enhanced platform, including a commercial presence in more than 90 countries, the combined company expects to continue to increase adoption of current tests, and to bring new innovative cancer diagnostics to patients throughout the world.

"We are very pleased to join forces with Exact Sciences, a company and team with which we have a shared vision to revolutionize the way cancer is diagnosed and treated,” Kim Popovits, chairman of the board, CEO and president of Genomic Health, said in a release. "Genomic Health has achieved incredible success over nearly two decades in pioneering cancer diagnostics, and the recent landmark TAILORx trial results set a new standard of care for the use of the Oncotype DX test for women with early-stage invasive breast cancer. This transaction provides immediate value to Genomic Health stockholders through an upfront cash payment, as well as ownership in a combined company with enhanced financial strength and the commercial and R&D capabilities to continue to drive significant growth into the future."

The combined company expects to generate revenue of approximately $1.6 billion and a gross profit of about $1.2 billion in 2020. Additionally, the combination is expected to generate annualized cost synergies of about $25 million within the third full year following close, primarily through reducing public company costs and purchasing optimization.

"Uniting the best minds and molecular diagnostics capabilities will advance the fight against cancer. Combining industry pioneers Exact Sciences and Genomic Health is a pivotal step toward building the leading cancer diagnostics company in the world," said Kevin Conroy, chairman and CEO of Exact Sciences. "Exact Sciences is continuing to grow sales and expand adoption of Cologuard at a rapid pace, and Genomic Health's Oncotype DX is the global standard of care to inform treatment decisions for women with breast cancer. Together, 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. We are excited to join together two teams who are united in their dedication to making a positive impact on patients' lives."

In May, MD+DI spoke with Conroy to talk about the dramatic transformation the company had undergone since he took the helm. Conroy even took time to address the company’s future, noting

“Exact Sciences has a bright future,” Conroy told MD+DI in a May interview. “We’re in the best position to lead in earlier cancer detection. We have the right experience. We have the right team. And, importantly, we have the science and technology to find cancer earlier. With these tools, we can develop a variety of noninvasive tests for the earlier and more accurate detection of the deadliest cancers, supporting our goal to improve outcomes and change lives. Whether that’s growing Cologuard or introducing new cancer diagnostics, the smart work our dedicated team does every day to make progress in the earlier detection of cancer has tremendous potential.”