On Monday, Exact Sciences (NASDAQ:EXAS) Corporation (NASDAQ:EXAS) shares received a reaffirmed Buy rating and a steady price target of $75 from Canaccord Genuity. The endorsement comes following the company's announcement of new performance data for its blood-based colorectal cancer (CRC) screening test at the 2024 European Society for Medical Oncology (ESMO) Congress.
The test, which is designed to enhance the specificity of a novel biomarker, demonstrated an 88% sensitivity for detecting CRC and a 31.2% sensitivity for advanced adenomas (AA). These results are part of Exact Sciences' strategy to position the test as a reliable screening tool, with a focus on minimizing potential degradation in the test's accuracy.
The company also shared its expectations for the upcoming BLUE-C blood readout, now slated for the first half of 2025, which had been previously anticipated by the end of 2024. The delay is attributed to the expected updates to USPSTF guidelines and the completion of necessary analytical studies and automation processes. Exact Sciences suggests that its test could potentially match the AA sensitivity of the fecal immunochemical test (FIT) with these forthcoming results.
Despite the impressive data presented at ESMO, Canaccord Genuity predicts that the BLUE-C results will likely align more closely with other competing blood tests in the market. Nonetheless, the firm sees the colon blood test as a promising additional source of revenue for Exact Sciences, complementing its flagship product, Cologuard, which is anticipated to continue driving the company's long-term growth.
In other recent news, Exact Sciences Corporation has reported notable advancements. The company's revenues have risen by 12% year-over-year, reaching $699 million in its second quarter earnings, primarily driven by the use of its Cologuard test by over a million people and record global patient testing with Oncotype DX.
Furthermore, the company has initiated its Falcon Registry study for Multi-Cancer Early Detection (MCED) at Baylor Scott & White Health in Texas, with the goal of enrolling up to 25,000 participants.
Analysts from BTIG, Citi, and Piper Sandler have updated their perspectives on Exact Sciences. BTIG and Piper Sandler have raised their price targets to $82 and $85 respectively, both maintaining a positive rating on Exact Sciences shares. Citi has reaffirmed its Buy rating and $80.00 stock price target.
Exact Sciences has also disclosed promising initial data on its blood-based colorectal cancer (CRC) test. The test showed an overall CRC sensitivity of 88.3% and a specificity of 90.1%, surpassing initial expectations. Despite this, the company has warned of potential sensitivity degradation in the upcoming larger, pivotal study, with results anticipated in the first half of 2025. These are the recent developments for Exact Sciences Corporation.
InvestingPro Insights
Exact Sciences Corporation (NASDAQ:EXAS) has been the subject of attention following its recent performance data release for its CRC screening test. To provide investors with a deeper understanding, InvestingPro data reveals a market cap of $12.84 billion and a revenue growth of 13.54% in the last twelve months as of Q2 2024, indicating the company's expanding financial scale.
Despite not being profitable over the last twelve months, with a negative operating income margin of -10.81%, Exact Sciences has demonstrated a strong return over the last three months, with a price total return of 58.58%.
In line with the company's financial health, an InvestingPro Tip notes that Exact Sciences' liquid assets exceed its short-term obligations, which may provide some financial flexibility in its operations and research endeavors. However, analysts do not anticipate the company will be profitable this year, which could be a point of consideration for potential investors.
It is also noteworthy that the firm does not pay a dividend, focusing instead on reinvesting earnings back into the company's growth. For those seeking additional insights, there are many more InvestingPro Tips available for Exact Sciences at https://www.investing.com/pro/EXAS.
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