Shares of blood-screening and disease analysis and detection company Exact Sciences (EXAS) - Get Free Report jumped on Tuesday after the company said it has agreed to buy privately held cancer-detection provider Thrive Earlier Detection for $2.5 billion in cash and stock.
Shares of Exact Sciences were up more than 17% after the deal was announced.
Under the terms of the agreement, Cambridge, Mass.-based Thrive Earlier Detection will receive $1.7 billion up front - 65% in Exact Sciences common shares and 35% in cash, subject to certain adjustments, the companies said.
An additional $450 million will be payable to Thrive based on certain milestones related to the development and commercialization of a blood-based, multi-cancer screening test, the companies said.
The transaction is subject to customary closing conditions and regulatory approvals and is anticipated to close during the first quarter of 2021.
The deal will allow Madison, Wis.-based Exact Sciences to fold Thrive's early-stage cancer-screening test, CancerSEEK, into its already robust blood-based screening platform, Exact Sciences CEO Kevin Conroy said in a statement.
"The acquisition of Thrive is a giant leap toward ensuring blood-based, multi-cancer screening becomes a reality and eventually, the standard of care,” Conroy said.
"Thrive is driven by the knowledge that if cancer is caught early enough, it can be more effectively treated or even cured, and every patient deserves a chance for a better outcome," said Thrive CEO David Daly.
Separately, Exact Sciences said it has also acquired Base Genomics, an epigenetics company that uses DNA analysis to detect early stage cancers. Terms of that deal weren't immediately made public.
Shares of Exact Sciences were up 17.35% at $125.06 in trading on Tuesday.