Under the agreement, Thrive will receive the total consideration of up to $2.15 billion, which includes $1.7 billion payable at closing, comprised of 65% of Exact Sciences common stock and 35% in cash, according to a news release.
Shares of EXAS were buoyed by the news of the acquisition this morning, rising 15.8% at $123.47 per share just after the market opened.
Additionally, $450 million is payable based on certain milestone achievements related to the development and commercialization of a blood-based, multi-cancer screening test. The companies expect the transaction to close during the first quarter of 2021.
Cambridge, Mass.-based Thrive develops the CancerSEEK blood test which, in a recently published study, proved to double the number of cancers found in its method of screening compared to screening practices in a real-world setting, the company said last month. In July, it had raised a $257 million Series B round to enable the development of additional real-world evidence while pursuing regulatory approval.
Madison, Wis.-based Exact Sciences plans to combine CancerSeek with its scientific platform, clinical organization and commercial infrastructure to establish itself as a leading competitor in blood-based, multi-cancer screening with expectations of developing a more accurate test to continue the acceleration of the screening platform’s development.
“The acquisition of Thrive is a giant leap toward ensuring blood-based, multi-cancer screening becomes a reality and eventually, the standard of care,” Exact Sciences chairman & CEO Kevin Conroy said in the release. “We couldn’t be more excited that Exact Sciences will be at the forefront of this incredible opportunity to serve patients. We have long respected the Thrive team for their rigorous scientific approach, having participated in both funding rounds as an investor.
Conroy added that the leveraging of Exact Sciences’ established R&D team, plus a highly accurate testing platform will augment the development of CancerSEEK as it pushes toward commercialization.
“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,” Thrive CEO David Daly said. “Our team has made significant progress toward our mission and we are eager to collaborate with and benefit from Exact Sciences’ expertise, and believe that together we will enable broader, quicker adoption of our test. With the support of our ongoing partnership with Johns Hopkins University, we are energized to contribute meaningfully to our shared mission of advancing the fight against cancer and providing life-changing answers to patients in need.”