Get the Latest Investment Ideas Delivered Straight to Your Inbox. Subscribe


Exact Sciences Shares Rise 29% as Firm Announces Q3 Earnings, a Capital Raise and Two Acquisitions

Share on Stocktwits


Exact Sciences Corp. shares reached a new 52-week high after the maker of cancer screening test Cologuard reported Q3/20 financial results that included a greater than 86% increase in year-over-year revenue.

Molecular diagnostics company Exact Sciences Corp. (EXAS:NASDAQ), which is focused on the early detection and prevention of certain some forms of cancer, today announced third quarter 2020 financial results for the period ended September 30, 2020.

Exact Sciences reported that Q3/20 revenue increased by 86.65% to $408.4 million, compared to $218.8 million in Q3/19. The firm indicated in the report that revenue generated in the first nine months of 2020 was $1.025 billion, which represents a 76.51% increase over the $580.7 million it recorded during the first nine months of 2019.

The company's Chairman and CEO Kevin Conroy remarked, "The Exact Sciences team delivered a strong quarter and made significant progress towards our vision...We're confident in the long-term growth outlook for both Cologuard and Oncotype DX and are excited about our extensive pipeline of liquid biopsy tests. Our team and the depth and breadth of our capabilities position us at the forefront of advanced cancer diagnostics."

The firm stated that Screening revenue in Q3/20 decreased by 2.0% to $214.6 million versus Q3/19. The company explained that Screening includes laboratory service revenue from its Cologuard and Biomatrica products.

The firm further advised that Precision Oncology revenue and COVID-19 testing revenue totaled $91.6 million and $102.2 million respectively during this latest quarter. The company noted that Precision Oncology revenues includes laboratory service revenue from global Oncotype DX products.

The company listed that its GAAP gross margin was 72% in Q3/20. The firm advised that it posted a one-time intangible asset impairment of $209.7 million primarily related to "certain in-process research and development assets related to an in vitro diagnostic version of Oncotype DX."

Exact Sciences posted a net loss in Q3/20 of $219.9 million, or $1.46 per share, compared to a net loss of $40.5 million, or $0.31 per share in Q3/19. The company also reported EBITDA of $(160.2) million and adjusted EBITDA of $94.5 million in Q3/20.

The company explained that its non-invasive colorectal cancer screening test, Cologuard, was approved by the FDA in 2014 and that "Cologuard is indicated to screen adults 45 years of age and older who are at average risk for colorectal cancer by detecting certain DNA markers and blood in the stool." The firm advised that its "Oncotype DX® portfolio of breast, colon and prostate cancer tests applies advanced genomic science to reveal the unique biology of a tumor in order to optimize cancer treatment decisions."

Exact Sciences also announced today that that it has entered into agreements to sell $869 million of common stock in a registered direct offering. The company advised that it has executed agreements to sell "an aggregate of 8,605,483 shares of its common stock, par value $0.01 per share, in a registered direct offering to ten institutional investors, including some of its largest shareholders as well as healthcare specialist firms Casdin Capital and Rock Springs Capital."

The company indicated that the offering is expected to close on or about October 29, 2020, and is subject to ordinary closing conditions. The firm stated the shares will be sold at a price of $101.00 per share, which will generate gross proceeds of $869.2 million and about $866.0 million in net proceeds after transaction related fees and expenses.

Exact Sciences stated the net proceeds from the sale will be utilized for general corporate purposes and may be used to fund debt repayment, working capital and business acquisitions, including the company's pending acquisition of Thrive Earlier Detection Corp.

On a very busy news day for the company, Exact Sciences additionally announced that that it has entered into a definitive agreement to acquire early cancer detection company Thrive Earlier Detection Corp. for an estimated amount of $2.15 billion in a combination cash and stock deal. The firm provided details of the transaction and reported that the deal has already been unanimously approved by each company's Board of Directors. The acquisition is expected to close in Q1/21 and is subject to regulatory approval and certain other conditions.

In the same news release, Exact Sciences also reported that "it has also acquired Base Genomics, an epigenetics company working to set a new standard in DNA methylation analysis, one of the most promising approaches to detecting cancer in its earliest stages." The firm did not elaborate on the details of the transaction, but indicated that the specific terms of this particular transaction were disclosed in Form 10-Q, filed today with the U.S. Securities and Exchange Commission.

Exact Sciences is a provider of cancer screening and diagnostic tests based in Madison, Wis. The company stated that its product pipeline is being developed in order to combat some of the deadliest forms of cancers and improve patient care.

Exact Sciences started the day with a market capitalization of around $16.0 billion with approximately 150 million shares outstanding and a short interest of about 8.5%. EXAS shares opened 6.5% higher today at $113.51 (+$6.94, +6.51%) over yesterday's $106.57 closing price and reached a new 52-week high price this morning of $137.41. The stock has traded today between $113.27 and $137.41 per share and at present is trading at $137.35 (+$30.78, +28.88%).


1) Stephen Hytha compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. He or members of his household own securities of the following companies mentioned in the article: None. He or members of his household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the decision to publish an article until three business days after the publication of the article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.
6) This article does not constitute medical advice. Officers, employees and contributors to Streetwise Reports are not licensed medical professionals. Readers should always contact their healthcare professionals for medical advice.

Want to read more about Life Sciences Tools & Diagnostics investment ideas?
Get Our Streetwise Reports Newsletter Free and be the first to know!

A valid email address is required to subscribe