(Bloomberg) -- Exact Sciences Corp. is in advanced talks to acquire Genomic Health Inc. for about $2.8 billion to bolster its cancer testing capabilities, people familiar with the matter said.
An agreement could be announced as early as next week, said the people, who asked not to be identified because negotiations are private. Discussions could still be delayed or fall apart, the people said.
Genomic's shares surged more than 20% in the past week, giving it a market value of about $2.55 billion, and it has more than $200 million in cash on hand. Exact Sciences is worth $15.2 billion after a 90% surge in the past 12 months.
A representative for Exact Sciences declined to comment while Genomic Health didn't immediately respond to requests for comment.
Exact Sciences, based in Madison, Wisconsin, focuses on the early detection of cancer, developing DNA-based tests to help diagnose colorectal cancer.
Genomic Health, founded in 2000 and based in Redwood City, California, is focused on commercializing clinical diagnostic tests for cancer. Those tests have been used more than 1 million times, according to the company's website.
The company's largest shareholder is Baker Bros. Advisors LP, which holds a 26% stake in the company, according to Bloomberg data.
To contact the reporters on this story: Ed Hammond in New York at ehammond12@bloomberg.net;Nabila Ahmed in New York at nahmed54@bloomberg.net;Kiel Porter in Chicago at kporter17@bloomberg.net
To contact the editors responsible for this story: Liana Baker at lbaker75@bloomberg.net, ;Aaron Kirchfeld at akirchfeld@bloomberg.net, Michael Hytha
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