Wedbush Securities Expects In-Line 4Q14 Results For EXACT Sciences

Loading...
Loading...
In a report published Wednesday, Wedbush Securities analyst Zarak Khurshid reiterated a Neutral rating and $19.00 price target on
EXACT Sciences Corporation
EXAS
. In the report, Wedbush Securities noted, "Exact Sciences is a pure-play molecular diagnostic company pioneering a game-changing stool-based test for the early detection of colorectal cancer. The test, called Cologuard, was submitted to the FDA for PMA approval on June 10, 2013. Following a successful FDA panel meeting (11-0 vote) on 3/26 and FDA facility inspection completion as of 7/11/14 the test was approved by the FDA on 8/12/2014. "The preliminary CMS coverage and pricing decision was issued on 10/9/14, which outlined favorable pricing (ultimately adjusted to $493) and a three-year testing interval. We expect the test to initially be used as an adjunct to colonoscopy and perhaps as a replacement in certain instances. The market potential is large, with a max US testing opportunity of around 19 MM and near-term addressable market of around 6.5 MM (or 2x the comparable FIT market), in our view. We remain long-term believers in the technology and management; however, the commercial risks are not insignificant and the current valuation is among the highest ever achieved for a pre-revenue diagnostics company. We could become more bullish on shares as a result of better clarity around private payor reimbursement, clinical adoption, collections, operating leverage and/or meaningful pipeline progress." EXACT Sciences closed on Tuesday at $25.75.
Loading...
Loading...
date
ticker
name
Price Target
Upside/Downside
Recommendation
Firm
Posted In: Analyst ColorReiterationAnalyst RatingsWedbush SecuritiesZarak Khurshid
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!

Loading...