EXACT Sciences Corporation (NASDAQ:EXAS) announced that the Centers for Medicare and Medicaid Services(CMS) issued a preliminary determination maintaining the current reimbursement rate for Cologuard, the company’s non-invasive, stool DNA-based colon cancer screening test.

CMS considered reimbursement for a new CPT billing code for Cologuard (81528), as well as a request for reconsideration of Cologuard’s current reimbursement rate. In its determination, CMS approved a crosswalk of the new CPT code for Cologuard to three existing codes, which yield a current reimbursement rate of $492.72. The new CPT code replaces the G code assigned to Cologuard as part of CMS’ national coverage determination from October, 2014.

“We are pleased with CMS’ preliminary determination regarding Cologuard’s reimbursement rate and coding,” said Kevin T. Conroy, Exact Sciences’ chairman and chief executive. “Both Medicare and commercial payors are accustomed to using CPT codes and they facilitate the smooth processing of claims. We have worked cooperatively with CMS and appreciate their continued support of Cologuard as a valuable non-invasive screening option for patients and providers.”

After a period of public comment, CMS’ decision will be finalized in November and will become effective on Jan. 1, 2016. (Original Source)

Shares of Exact Sciences closed last Friday at $18.90. EXAS has a 1-year high of $32.85 and a 1-year low of $17.34. The stock’s 50-day moving average is $21.01 and its 200-day moving average is $24.11.

On the ratings front, EXAS has been the subject of a number of recent research reports. In a report issued on September 9, Canaccord Genuity analyst Mark Massaro reiterated a Buy rating on EXAS, with a price target of $26, which represents a potential upside of 37.6% from where the stock is currently trading. Separately, on July 23, Lake Street Capital’s Bruce Jackson upgraded the stock to Buy and has a price target of $30.

According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Mark Massaro and Bruce Jackson have a total average return of -12.2% and 4.0% respectively. Massaro has a success rate of 21.9% and is ranked #3707 out of 3759 analysts, while Jackson has a success rate of 54.5% and is ranked #1745.

The street is mostly Bullish on EXAS stock. Out of 5 analysts who cover the stock, 5 suggest a Buy rating . The 12-month average price target assigned to the stock is $33.33, which implies an upside of 76.3% from current levels.

Exact Sciences Corp is a molecular diagnostics company currently focused on the early detection and prevention of colorectal cancer. It has developed a noninvasive, patient friendly screening test called Cologuard(R).