Biotech Values

[DewDiligence]

EXAS -6% on tepid 1Q16 results:

http://finance.yahoo.com/news/exact-sciences-completes-40-000-090000268.html

The number of completed Cologuard tests in 1Q16 (~40K) was +5% vs 4Q15.

Compliance* (i.e. the ratio of completed tests to ordered tests) in 1Q16 dipped 200 basis points from 71% to 69%.

EXAS is retaining its full-year 2006 guidance of 240K completed tests.

EXAS has not given any guidance on the volume necessary for breakeven operation; however, they think that COGS per completed test can eventually (i.e. at peak sales volume) be as low as $130, which implies a potential gross margin of about 65%.

EXAS renewed its co-marketing agreement with IRWD for three months, but it sounds as though the agreement will end after that.

EXAS' stock is down 80% from its Jun 2015 high.

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*Compliance is measured on a rolling 12-month basis, where the 12-month period ends two months before the end of the reporting quarter.