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Exact Sciences Swallowed by Abbott: One Less "Innovator," One More Cog in the MachineSo,... Exact Sciences Swallowed by Abbott: One Less "Innovator," One More Cog in the Machine
So, Exact Sciences gets bought out by Abbott for a cool $21 billion. Another one bites the dust. All that talk about "bold thinking" and "relentless pursuit of innovation"? Yeah, that’s corporate-speak for "we built something valuable enough to get acquired." Let's be real; it's about the exit strategy, not eradicating cancer.
Abbott's CEO, Robert Ford, is all excited about bringing Exact Sciences into the "company’s fold." Fold? Sounds more like a black hole where innovation goes to die a slow, bureaucratic death. He says Exact Sciences has a "remarkable legacy." I say, it had a legacy. Now it's just another line item on Abbott's balance sheet. They're gonna squeeze every last drop of profit out of Cologuard and those other cancer tests, and then what?
The Illusion of Progress
They're touting this as a win for cancer diagnostics, a "sector defining event." Please. It's a win for Abbott's shareholders, who'll see their stock price tick up a few points. It's a win for Exact Sciences' executives, who are probably popping champagne right now. But for actual patients? For the future of cancer research? I'm not so sure.
This whole thing is framed as Abbott expanding into cancer screening because they believe Exact Sciences is "the perfect company to combine forces with." Combine forces? More like assimilate. Abbott’s got diabetes and cardiovascular disease covered, now they’re adding cancer to the portfolio. One-stop shop for all your medical woes, conveniently managed by one giant corporation.
And get this: "Abbott expects Exact Sciences to generate more than $3 billion in revenue this year, and grow Abbott’s total diagnostics sales to more than $12 billion annually after the acquisition closes." It's always about the money, ain't it? Abbott to acquire Exact Sciences for about $21B
Madison's Loss, Abbott's Gain
Exact Sciences is based in Madison, Wisconsin, with about half of its 7,000 employees there. Abbott's promising to "maintain its presence in Madison." Sure, they'll keep a skeleton crew to keep the Cologuard assembly line humming. But don't expect any groundbreaking research to come out of there anytime soon. Innovation requires independence, agility, and a willingness to take risks. All of which get stifled when you're part of a massive, risk-averse corporation.
Earlier this year, Exact Sciences laid off 4% of its workforce, including 200 in Wisconsin. Now they get bought out? How convenient. Bet those jobs ain't coming back. The Greater Madison Chamber of Commerce is "excited to welcome Abbott to the Madison business community." Offcourse they are. Free publicity and the illusion of progress.
CEO Kevin Conroy will stick around in an "advisory role." Translation: he'll collect a fat paycheck to smooth things over and make sure the transition goes smoothly. Then he'll probably "retire" to a beach somewhere.
The Future of Diagnostics?
Abbott says cancer screening and precision oncology diagnostics are a $60 billion segment in the U.S. alone. That's a lot of money to be made, a lot of lives hanging in the balance. And now it's largely controlled by one company.
What happens when Abbott decides Cologuard isn't profitable enough? What happens when they shift their focus to some other, more lucrative area of healthcare? Will they continue to invest in early cancer detection, or will they prioritize their bottom line?
Then again, maybe I'm just being cynical. Maybe this acquisition will actually lead to better cancer diagnostics, more accessible screening, and improved patient outcomes. Maybe...nah.
So, What's the Real Story?
It's always the same old story: corporate consolidation, the death of innovation, and the triumph of profit over people. Give me a break.