New Cancer Screening Recommendation Good For Exact Sciences: Canaccord
The 12-page recommendation statement uploaded by the USPSTF [US Preventive Services Task Force] on Tuesday bodes well for EXACT Sciences Corporation (NASDAQ: EXAS), Canaccord Genuity’s Mark Massaro said in a report. He maintained a Buy rating for the company, while raising the price target from $9 to $12.
“In the document, the USPSTF removed the words "recommended" and "alternative" and reiterated that "colorectal cancer screening" is an A rating, and clearly removed any hierarchy of test modalities,” Massaro wrote. He added that this was great news for Exact Sciences and should trigger commercial payor mandates, particularly from United Health and Aetna Inc (NYSE: AET).
The USPSTF had removed these terms to better communicate that there was convincing evidence that screening for colorectal cancer provides substantial benefit for adults aged 50 to 75 years, and a significant percentage of the eligible US population was not taking advantage of this “effective preventive health strategy,” Massaro mentioned.
"As such, the screening tests are not presented in any preferred or ranked order; rather, the goal is to maximize the total number of persons who are screened because that will have the largest effect on reducing colorectal cancer deaths,” the analyst quoted the USPSTF as saying.
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|Aug 2016||Goldman Sachs||Maintains||Neutral|
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