Abbott Laboratories (ABT.US) is in talks to acquire Exact Sciences Corporation (EXAS.US). Analysts say the acquisition price needs to exceed $100 per share.

William Blair analyst states that if Abbott Laboratories wants to acquire Exact Sciences Corporation, the offer will likely need to exceed $100 per share. Earlier reports indicated that Abbott Laboratories is in talks to acquire Exact Sciences Corporation, which is known for its colon cancer detection product Cologuard. Following the news of negotiations in the market, Exact Sciences Corporation's stock price surged by 21% to around $84 per share, and a deal may be reached in the coming days. William Blair analyst Andrew Brackman wrote in a report on Wednesday, "From a valuation perspective, we believe the acquisition valuation needs to reach 6 to 7 times forward sales," "This represents a premium of over 35% compared to the current valuation of less than 5 times, approximately 20% higher than the five-year average of around 5.6 times, and aligns with the valuation range of smaller but similarly growing profit laboratories." Barclays analyst Luke Sargot stated in a report on Wednesday, "Overall, in the limited details available, Exact Sciences Corporation will provide a solid brand foundation and a strong foothold in entering the broader oncology screening market."