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Abbott Buying Exact Sciences? My Take: Big Pharma's Hungry for Your Poop
The Cologuard Cash Grab
So, Abbott might be buying Exact Sciences. Big freakin' deal. Another day, another corporation swallowing up something that was, at least in theory, trying to do some good. And let's be real, it's all about the money. They see Cologuard's success – people mailing in their poop to avoid colonoscopies – and they want a piece of that action.
Bloomberg's "sources familiar with the matter" are whispering about a deal worth maybe $20 billion. Twenty. Billion. Dollars. For a company built on...well, you get the picture. Makes you wonder how much of that goes back into actual cancer research versus lining executive pockets.
And the analysts? Oh, they're all excited. BTIG analysts are talking about a "traditional-type 25-40% premium" on Exact Sciences' closing price. Translation: they're gonna make a killing off this, while you and I are stuck paying for overpriced tests. William Blair analysts are drooling over the "strategic rationale." I'll tell you the strategic rationale: make more money. That's it. It's always the damn money.
Abbott's Appetite for... Stuff
Abbott, of course, is no stranger to this game. They're the guys who brought you Similac, Ensure, and a whole bunch of other stuff you see advertised during daytime TV. Now they want to add cancer screening to their portfolio. Because why not?
I mean, think about it: Abbott can use its existing network to push Cologuard even harder. More direct-to-consumer marketing, more pressure on doctors to prescribe it. And sure, maybe more people get screened for colon cancer. But at what cost? Will Abbott keep the test affordable? Will they prioritize patient care over profit margins? Don't hold your breath.
They're already comparing this deal to JNJ's acquisition of Abiomed and Siemens Healthineers' grab of Varian. Great. More consolidation, less competition, higher prices. Where’s the upside for the average Joe?
And Exact Sciences? They get a big payday, and their executives get to ride off into the sunset with golden parachutes. Good for them, I guess. But what about the people who built that company from the ground up? The scientists, the engineers, the sales reps? Are they gonna get a piece of that $20 billion pie? Or will they be "downsized" to make room for Abbott's corporate overlords? I bet I know the answer. Offcourse, I'm just being cynical... or am I?
The Future of Cancer Screening: Even More Corporate
So, what does this mean for the future of cancer screening? More of the same, probably. More corporate control, more focus on profits, less on actual patient care. We'll see more "innovative" tests that cost a fortune and may or may not actually improve outcomes. We'll see more direct-to-consumer marketing campaigns that prey on our fears and anxieties.
And we'll see more companies like Exact Sciences getting swallowed up by giants like Abbott. Because in the world of healthcare, bigger is always better. Right? Right?
But wait a minute... are we really supposed to believe that all of this is ultimately for the benifit of the patients? I mean, let's be real. It's about the shareholders. Always has been, always will be.