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Wednesday, June 15, 2016 8:45:48 AM
Shares are rallying after a key new hire, and ahead of an investor conference.
http://finviz.com/quote.ashx?t=exas&ty=c&ta=1&p=d
What: After announcing recently that management hired a former Baird research analyst in a key role, and a day before presenting at William Blair's 36th annual growth stock conference, shares in Exact Sciences (NASDAQ:EXAS) surged 33% higher today.
So what: Exact Sciences shares are gaining ground, but today's rally follows a significant decline in the company's share price since the launch of Cologuard, the company's colon cancer screening test.
EXAS Chart
EXAS DATA BY YCHARTS.
The company didn't report any news today, but it did announce the appointment of Jeff Elliott to a senior role earlier this month, and management's calendar has been packed with investor conferences that could be factoring into the move higher.
Elliott, a former senior research analyst who covered the diagnostic and lab industries for Baird, is being tasked with identifying and pursuing strategic business opportunities for Exact Sciences, and while management didn't specifically say what opportunities Elliott will be evaluating, it could be that he's pursuing collaborations, licensing, or a business combination.
The company's Cologuard does very good job at screening for colon cancer, but winning reimbursement has been more challenging than expected, and despite a significant increase in screenings, spending continues to significantly outpace revenue. It's possible the hiring of Elliott signals that the C-suite is willing to entertain deals that could take some of the burden off of the company's balance sheet.
Exact Sciences has also been aggressively making its case with investors this month. On June 8, the company was at Goldman Sachs' 37th Annual Global Healthcare Conference, and on June 9, management presented at Jefferies Healthcare Conference. Tomorrow, CEO Kevin Conroy is scheduled to appear at William Blair's 36th Annual Growth Stock Conference in Chicago.
Now what: Sellers were holding 22% of the company's share float short entering today, and given today's move, it wouldn't be surprising if some sellers have decided to cover their positions ahead of tomorrow's presentation.
At this conference, management will probably reinforce the potential for a more than doubling in Cologuard tests and sales this year. Last year, the company completed 104,000 tests, and this year, management expects to complete more than 240,000 screenings. If Exact Sciences completes that many tests, it expects sales will reach at least $90 million, up from $39.4 million last year.
Overall, the potential to provide regular screenings to an increasingly larger and longer-living population of baby boomers has management pegging Cologuard's addressable market at $4 billion. That's undeniably a big market opportunity, but investors might want to temper some of their enthusiasm, because even if the company executes on its sales goals for 2016, it will still lose money. Total operating costs exited Q1 at an annualized $216 million.
Recent EXAS News
- Form 8-K - Current report • Edgar (US Regulatory) • 05/08/2024 09:10:47 PM
- Form 424B7 - Prospectus [Rule 424(b)(7)] • Edgar (US Regulatory) • 05/08/2024 09:08:47 PM
- Form 10-Q - Quarterly report [Sections 13 or 15(d)] • Edgar (US Regulatory) • 05/08/2024 09:03:20 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 05/08/2024 08:08:13 PM
- Exact Sciences Announces First-Quarter 2024 Results • Business Wire • 05/08/2024 08:05:00 PM
- U.S. Futures Slightly Dip Amid Corporate Earnings and Quiet Economic Calendar, Oil Prices Fall • IH Market News • 05/08/2024 12:29:17 PM
- Exact Sciences Demonstrates Continued Scientific Advancement in Colorectal Cancer Screening with Multiple Data Presentations at DDW® 2024 • Business Wire • 05/07/2024 12:00:00 PM
- Exact Sciences to Participate in May Investor Conference • Business Wire • 05/01/2024 10:00:00 AM
- Exact Sciences Names Aaron Bloomer as New Chief Financial Officer • Business Wire • 04/15/2024 10:00:00 AM
- Exact Sciences Announces Debt Exchange Transaction and Private Placement of Convertible Senior Notes • Business Wire • 04/11/2024 10:00:00 AM
- Exact Sciences to Present Late-Breaking Data from ASCEND-2 Study Validating Its Investigational Multi-Cancer Early Detection Test at AACR Annual Meeting 2024 • Business Wire • 04/08/2024 04:05:00 PM
- Exact Sciences Schedules First Quarter 2024 Earnings Call • Business Wire • 04/08/2024 10:00:00 AM
- Exact Sciences to Provide Mayo Clinic Patients with Individualized Cancer Tumor Information to Inform Treatment • Business Wire • 04/04/2024 10:05:00 AM
- Exact Sciences Advances Development of Non-Endoscopic Oncoguard® Esophagus Test to Screen for Esophageal Cancer and Pre-Cancer • Business Wire • 03/28/2024 10:00:00 AM
- Exact Sciences Named 2024 Gallup Exceptional Workplace Award Winner • Business Wire • 03/27/2024 12:05:00 PM
- The New England Journal of Medicine Publishes Cologuard Plus™ Test Results from Pivotal BLUE-C Study • Business Wire • 03/13/2024 09:03:00 PM
- Exact Sciences and Basketball Great Jamal Mashburn Encourage Americans 45+ to Have a Game Plan Against Colon Cancer • Business Wire • 03/07/2024 12:59:00 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 03/05/2024 01:42:55 AM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 03/05/2024 01:42:08 AM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 03/05/2024 01:41:03 AM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 03/05/2024 01:40:21 AM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 03/05/2024 01:39:31 AM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 03/05/2024 01:38:49 AM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 03/05/2024 01:38:16 AM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 03/05/2024 01:37:25 AM
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