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Exact Sciences to buy Genomic Health for $2.8 billion

Operations at Exact Sciences
Source: Exact Sciences

Cancer diagnostics company Exact Sciences said on Monday it will buy health-care company Genomic Health for about $2.8 billion to bolster its cancer testing business.

Under terms of the deal, Genomic Health stockholders will receive $27.50 in cash and $44.50 in Exact Sciences stock, for a total value of $72 per share.

Wisconsin-based Exact Sciences makes non-invasive fecal DNA screening test Cologuard to help diagnose colorectal cancer.

Genomic Health develops and commercializes genomic-based diagnostics tests using its Oncotype IQ platform for various cancers, including breast and prostate.

The deal, expected to close by end-2019, is estimated to yield about $25 million in cost synergies within the third year, the companies said in a statement.

Shares of California-based Genomic Health rose 10.7% to $76.01 in early trading, while Exact Sciences' shares fell 3.3% to $114

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Pfizer will combine its off-patent drug business with Mylan

Key Points
  • Pfizer shareholders would own 57% of the new company and Mylan's shareholders would get 43%.
  • The combined company, which will sell Mylan's EpiPen and Pfizer's Viagra, will be domiciled in the U.S.
  • The new company will be led by Pfizer's Michael Goettler, currently president of the Upjohn business. Mylan Chairman Robert Coury will be executive chairman, and Mylan CEO Heather Bresch will depart.