Biotech Values

[DewDiligence]

EXAS Cuts Workforce by 50%

[It’s amusing how they give the layoff equal billing with the announcement of the date for the regular quarterly CC. Anything to take the focus off the bad stuff.]

http://biz.yahoo.com/bw/061017/20061017006262.html?.v=1

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EXACT Sciences Corporation Announces Restructuring and Third Quarter 2006 Conference Call

Tuesday October 17, 4:28 pm ET

Company preserves resources with $24 million in cash to focus on key catalysts

MARLBOROUGH, Mass.--(BUSINESS WIRE)--EXACT Sciences Corporation (Nasdaq: EXAS ) announced today that it has initiated a plan to reduce its cost structure by eliminating 21 positions across all departments, effective October 20, 2006. The resulting reduction in expenses will extend the Company's resources, based on current operating plans, into the first quarter of 2009. EXACT Sciences' remaining 23 employees will focus on the following key objectives: obtaining inclusion in colorectal cancer screening guidelines, obtaining Medicare coverage for stool-based DNA screening, and optimization and further validation of the Company's 88% sensitive Version 2 technology. The Company will hold a conference call to discuss the restructuring and its third quarter results on October 24, 2006.

"With $24 million in cash on hand as of September 30, 2006, and this reduction in expenses, we will be in a better position to leverage key catalysts ahead," said Don Hardison, EXACT Sciences' President and Chief Executive Officer. "On a personal level, laying off good employees is always hard, but remaining focused and lean into 2007 is necessary. We look forward to the upcoming publication of study results based on our Version 2 technology and to a decision from the American Cancer Society and U.S. Multi-Society Task Force on colorectal cancer screening guidelines, which we expect in 2007."

Once fully implemented, EXACT Sciences estimates that this restructuring, as well as retention payments for remaining employees, will result in reduced salary and fringe benefits costs of approximately $1.5 million in 2007, and approximately $2.4 million annually thereafter.

Estimated restructuring charges of approximately $700,000 will be recorded in the fourth quarter of 2006 in connection with one-time employee termination benefits, including severance, outplacement and other fringe benefits. All of the charges will result in future cash expenditures. The Company also expects additional savings in certain non-employee costs to be realized in connection with this restructuring. Additionally, the Company is currently reviewing its facility needs and may record additional restructuring charges related to potential facility consolidations.

The Company will host a conference call to discuss its third quarter 2006 financial and operating results and other corporate developments, including the restructuring, on Tuesday, October 24, 2006 at 8:30 a.m. ET. The Company will announce its third quarter 2006 financial and operating results on Monday, October 23, 2006, after the close of regular market trading hours.

Information for the call is as follows:

Domestic callers: 866-831-6224

International callers: 617-213-8853

Participant Passcode: 36770327

The conference call replay information is as follows:

Domestic callers: 888-286-8010

International callers: 617-801-6888

Participant Passcode: 56284683

A live webcast of the conference call can be accessed at www.exactsciences.com through the Investor Relations link. The conference call and the webcast are open to all interested parties. An archived version of the webcast will be available at EXACT Sciences' web site, www.exactsciences.com, through the Investor Relations link, for one month. A replay of the conference call also will be available for 48 hours, beginning two hours after the completion of the live call.

The webcast is also being distributed over CCBN's Investor Distribution Network to both institutional and individual investors. Individual investors can listen to the call through CCBN's individual investor center at www.companyboardroom.com or by visiting any of the investor sites in CCBN's Individual Investor Network. Institutional investors can access the call via CCBN's password-protected event management site, StreetEvents (www.streetevents.com).

About EXACT Sciences Corporation

EXACT Sciences Corporation uses applied genomics to develop effective, patient-friendly screening technologies for use in the detection of cancer. Certain of its technologies have been licensed to Laboratory Corporation of America Holdings (LabCorp) for a stool-based DNA screening assay for colorectal cancer in the average-risk population. Colorectal cancer, which is the most deadly cancer among non-smokers, is generally curable if detected early. Despite the availability of colorectal cancer screening and diagnostic tests for more than 20 years, the rate of early detection of colorectal cancer remains low, and deaths from colorectal cancer remain high. EXACT Sciences believes its genomics-based technologies will help enable detection of colorectal cancer so that more people can be effectively treated. Founded in 1995, EXACT Sciences is based in Marlborough, Mass. PreGen-Plus(TM) has not been approved or cleared by the Food & Drug Administration.
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