BTIG On Exact Sciences Leak: Final Task Force Stance Could Lead To Routine Reimbursement More Quickly
EXACT Sciences Corporation (NASDAQ: EXAS) shares spiked 34 percent on Tuesday, following a JAMA [The Journal of the American Medical Association] article meant for release on June 21 being leaked. BTIG’s Sean Lavin maintained a Buy rating for the company, with a $9 price target. The analyst believes shares could move higher as more investors discover the article.
If the JAMA article is published and reflects updated recommendations of the USPSTF [US Preventive Services Task Force], the guidelines would help EXACT Sciences obtain routine reimbursement faster than the company may have under the previous recommendation. “While the update is not a perfect result, we see it as a major positive for the company,” Lavin wrote.
The older USPSTF recommendation was less positive and resulted in shares declining from ~$18 to below $10. Although the USPSTF is yet to issue a formal recommendation, the leaked JAMA article states the USPSTF highly recommends colon cancer screening between ages 50 and 75, but would no longer rank tests; instead, provide a list of acceptable ones that includes FITDNA, or Cologuard.
“While this seems like a bailout by the Task Force and we wonder why it is so reluctant to strongly recommend other tests vs. colonoscopy (relationships would not stun us), we believe being put on par with colonoscopy will help EXAS gain routine reimbursement and more rapid adoption,” Lavin commented.
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|Aug 2016||Goldman Sachs||Maintains||Neutral|
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