Exact Sciences (EXAS, Financial) has achieved a significant advancement with the inclusion of its Oncodetect molecular residual disease (MRD) test under Medicare coverage. This approval comes via the Centers for Medicare & Medicaid Services' Molecular Diagnostic Services Program (MolDX). The coverage applies to serial usage of the test in patients with stage II, III, and resectable stage IV colorectal cancer (CRC), specifically for adjuvant and recurrence monitoring over a five-year span.
This development represents a crucial step in Exact Sciences' effort to revolutionize cancer care by enabling earlier detection and more tailored treatments. The Medicare endorsement is pivotal for potentially over three million Americans eligible for MRD testing across various solid tumors. Supported by extensive clinical validation, the Oncodetect test is backed by studies like Beta-CORRECT, which verifies the test’s prognostic capabilities across CRC stages II-IV, and Alpha-CORRECT, known for its long-term follow-up of MRD in CRC recurrence. Through its integration with the ExactNexus technology platform, practitioners can effortlessly order this test alongside other Precision Oncology solutions offered by Exact Sciences.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 24 analysts, the average target price for Exact Sciences Corp (EXAS, Financial) is $69.00 with a high estimate of $90.00 and a low estimate of $54.00. The average target implies an upside of 28.88% from the current price of $53.54. More detailed estimate data can be found on the Exact Sciences Corp (EXAS) Forecast page.
Based on the consensus recommendation from 27 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 $78.00, suggesting a upside of 45.69% from the current price of $53.54. 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.
