Exact Sciences Corp. (NASDAQ:EXAS) develops noninvasive molecular screening tests for the early detection and prevention of colorectal cancer. We originally invested in the company because Cologuard, its revolutionary product, exhibited low market penetration and significant opportunity for continued adoption. Test accuracy versus other non-invasive tests has led to improved adoption rates and recent annual revenue growth in excess of 150%. Large commercial insurer, Aetna, recently announced its decision to cover the screening for qualified members. In this positive environment, Exact Sciences raised its test volume expectations to 415,000 for the year and noted meaningful gross margin improvement as its business model continues to scale faster than expected. As such, we are maintaining our position.
From Meridian Growth Funds first-quarter 2017 shareholder commentary.
