Updated from 1:04 p.m. ESTSequenom (SQNM) has dropped its bid for Exact Sciences (EXAS - Get Report) after the colon cancer test developer sold intellectual property and 3 million shares of stock to rival Genzyme ( GENZ) in a deal worth $24.5 million in cash.

Under the deal, announced late Tuesday, Genzyme will own roughly 11% of Exact Sciences and will own intellectual property related to prenatal and reproductive health, according to The Associated Press. Exact Sciences will retain licensing rights to its colorectal cancer screening technology.

"We have a responsibility to bring forward more advanced testing options for physicians and families and we are strongly committed to driving continued innovation in this field," said Jon L. Hart, Genzyme's senior vice president and general manager, in a statement.

Exact Science CEO Jeffrey Luber expressed similar satisfaction with the deal: "In addition to the substantial infusion of capital into EXACT, we believe that our ability to access Genzyme's extensive development and regulatory expertise will facilitate our efforts toward the introduction of our next-generation platform for colorectal cancer screening."

Sequenom extended an offer earlier in January to buy Exact Sciences for $41 million, or $1.50 per share. Exact Sciences said it was entertaining a better offer and rejected Sequenom's bid.

Shares of Exact Sciences, which competes with AMDL ( ADL) and Sentry Select Primary Metals ( PME.TO ), were tacking on 10.1% to $1.64 in recent trading. Genzyme was up 1.4% to $69.56, and Sequenom was down 0.4% to $23.

This article was written by a staff member of TheStreet.com.