Analysts at William Blair stated that Abbott Laboratories (ABT.US) would likely need to offer over $100 per share to acquire Exact Sciences (EXAS.US). Reports indicate that Abbott is in discussions to purchase Exact Sciences, known for its colon cancer detection product Cologuard. Following news of the negotiations, Exact Sciences' stock surged 21% to around $84 per share, with a potential deal expected to be finalized in the coming days.

Andrew Brackmann, an analyst at William Blair, noted in a Wednesday report, "From a valuation perspective, we believe the acquisition would need to be priced at 6 to 7 times forward sales." He added, "This represents a premium of over 35% compared to the current valuation of less than 5 times, and about 20% above the five-year average of approximately 5.6 times. It also aligns with the valuation range of smaller but similarly growing profitable labs."

Barclays analyst Luke Sergott commented in a separate Wednesday report, "Overall, with limited details available, Exact Sciences would provide a solid brand foundation and a strong foothold for expanding into the broader oncology screening market."