Exact Sciences, under the ticker (EXAS, Financial), is set to reveal significant findings from the Beta-CORRECT clinical validation study at the 2025 American Society of Clinical Oncology Annual Meeting. This study, a subset of the broader GALAXY cohort, emphasizes the capability of Exact Sciences' Oncodetect test in predicting recurrence in colorectal cancer stages II-IV. The results highlight the test's critical role in guiding treatment and monitoring strategies.
The company plans to introduce a next-generation version of this tumor-informed molecular residual disease (MRD) test, incorporating the MAESTRO technology from the Broad Institute. Promising preliminary data indicates this new test will be capable of tracking up to 5,002 patient-specific genetic variants and detecting circulating tumor DNA (ctDNA) at extremely low levels, below one part per million. This enhanced version is slated for availability to both new and existing users by 2026.
Further findings from Beta-CORRECT affirm the accuracy of Oncodetect in predicting recurrence, particularly in stage III colorectal cancer, and extend these results to stages II and IV. Individuals with positive ctDNA results post-therapy and during surveillance displayed a markedly increased risk of recurrence, by factors of 24 and 37, respectively. The upcoming MRD test, currently undergoing validation across various solid tumors, boasts the capability of tracking up to 5,000 patient-specific variants while maintaining a low detection threshold.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 25 analysts, the average target price for Exact Sciences Corp (EXAS, Financial) is $69.29 with a high estimate of $90.00 and a low estimate of $54.00. The average target implies an upside of 22.51% from the current price of $56.56. More detailed estimate data can be found on the Exact Sciences Corp (EXAS) Forecast page.
Based on the consensus recommendation from 28 brokerage firms, Exact Sciences Corp's (EXAS, Financial) average brokerage recommendation is currently 1.7, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Exact Sciences Corp (EXAS, Financial) in one year is $76.49, suggesting a upside of 35.24% from the current price of $56.56. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Exact Sciences Corp (EXAS) Summary page.
EXAS Key Business Developments
Release Date: May 01, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Exact Sciences Corp (EXAS, Financial) reported a strong first quarter with revenue growth of 11%, exceeding guidance by $19 million.
- The company launched Cologuard Plus, a next-generation test with Medicare coverage, which is expected to drive significant growth.
- Adjusted EBITDA increased by 61% to $63 million, showcasing improved profitability.
- Customer satisfaction reached an all-time high, indicating strong market acceptance and engagement.
- The company is seeing triple-digit growth in its customer-initiated ordering platform, enhancing accessibility and convenience for patients.
Negative Points
- The company faced challenges from one of the worst flu seasons in years, which could have impacted operations.
- Sales and marketing expenses were higher than expected, which may affect short-term profitability.
- There is uncertainty regarding the timeline for securing reimbursement for new tests, which could delay revenue realization.
- The launch of new products like Onco Detect may initially pressure gross margins due to higher costs.
- The company is still in the early stages of driving higher adherence in its rescreening programs, indicating room for improvement.
