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Exact Sciences Revisited


Shares of Exact Sciences Corp. (EXAS) touched an all-time high of $73.72 in intraday trading on Thursday before closing at $67.98. The stock was trading around $11 when we first alerted our subscribers to it on February 4, 2013 in our report titled "Catch It Early...". That time, the Company's flagship product, i.e., the colorectal cancer test Cologuard, was yet to be approved. A lot has happened since then, driving the stock price to the current level.

Cologuard, a noninvasive, stool DNA cancer screening test for colorectal cancer, received FDA approval on August 11, 2014. It is also CE marked, and has been available in Europe since 2015.

Since its launch, more than 1.3 million people have been screened with Cologuard, and 6,200 early-stage cancers and 42,500 pre-cancerous polyps have been detected.

The success of an approved drug or device depends on how well it is received by patients and doctors. The steadily growing number of Cologuard tests is testimony to the wide acceptance, this noninvasive colon cancer screening test enjoys.

Cologuard test volume in the fourth quarter of 2014, i.e., the period during which the test was launched, was a mere 4,000, which generated revenue of $1.5 million. In the recent second quarter, which ended June 30, 2018, the Company completed approximately 215,000 Cologuard tests, generating revenue of $102.9 million.

Looking ahead to 2018, the Company expects annual revenue to be in the range of $420 to $430 million. The annual revenue in 2017 was $266 million.

As recently as August 22, 2018, Exact Sciences entered into an agreement with Pfizer Inc. (PFE) to promote Cologuard, beginning in the fourth quarter of 2018 through 2021.

Now that Pfizer, which brings a large and experienced sales force and relationships integrating with the leading health systems, has been roped in to promote Cologuard, it may be worth taking a look at EXAS once again.

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