Exact Sciences Could Have Huge Upside After This Data Release

In a report published Friday, Jefferies analyst Brandon Couillard maintained a Buy rating on EXACT Sciences Corporation EXAS, with a price target of $33.

The US Preventive Services Task Force (USPSTF) is scheduled to publish its revised guidelines for CRC screening in the coming months, including an assessment of Cologuard.

“Under the ACA, all services with an A or B rating by USPSTF are required to be fully-covered by commercial insurers at no cost to patients. An A/B rating would also secure Cologuard a slot in HEDIS quality measures, a key financial incentive for adoption by large systems/networks,” analyst Brandon Couillard said.

An expert at Jefferies believes that EXACT Sciences’ DeeP-C trial dataset is “strong enough evidence” to support at least a 'B' rating and that Cologuard's “superior sensitivity (relative to FIT) should more than outweigh its slightly higher false-positive rate.”

In the report Jefferies noted Cologuard’s positives as:

• EXACT Sciences’ DeeP-C study meets the majority of USPSTF criteria for "high-quality evidence"
• Cologuard's superior analytical performance positions it favorably relative to other A/B-rated screening options
• USPSTF's focus on benefits vs. harms favors Cologuard's non-invasive approach relative to colonoscopy