Company Update (NASDAQ:EXAS): EXACT Sciences Corporation Reports Fourth Quarter and Full Year 2015 Results


EXACT Sciences Corporation (NASDAQ: EXAS) announced that the company reported revenues of $39.4 million as a result of completing more than 104,000 Cologuard tests for full-year 2015.  The company generated $14.4 million in revenues from approximately 38,000 completed Cologuard tests during the fourth quarter ended Dec. 31, 2015.

The cumulative number of physicians ordering Cologuard expanded steadily in 2015. During the fourth quarter of 2015 this total grew 27 percent from the third quarter to nearly 27,000 physicians.  On average, approximately 500 new physicians ordered Cologuard each week and 75 percent of physicians re-ordered the FDA-approved, non-invasive colon cancer screening test.

“Our fourth quarter and full-year revenue and completed-test results are in line with the preliminary numbers we released in January and reflect the continued adoption and use of Cologuard,” said Kevin T. Conroy, CEO and chairman of the board of Exact Sciences.  “Patients and physicians showed strong demand for Cologuard and extraordinary satisfaction with its screening and compliance process during its first year on the market. We expect to build on this momentum during 2016 by educating an increasing number of America’s primary care physicians about Cologuard and advancing our efforts to reach the 80 million people who need to be screened for colon cancer.”

The patient compliance rate with Cologuard at the end of 2015 was 71 percent. This is almost twice the rate of reported colonoscopy uptake in a given year and significantly higher than fecal blood testing. The compliance rate is derived from the number of valid test results generated from collection kits shipped to patients 60 or more days prior to Dec. 31, 2015. Exact Sciences Laboratories, through its customer care center, is helping to drive patient compliance by systematically contacting patients for whom Cologuard has been ordered and encouraging them to complete their screening.

2016 Outlook

The company continues to anticipate completing more than 240,000 Cologuard tests during 2016, generating between $90-100 million in revenue. This represents a greater than 130-percent year-over-year increase in the number of Cologuard tests completed and revenue growth of approximately 128 to 154 percent from 2015.

“As commercial coverage expands, the Cologuard ordering process is streamlined and our sales and marketing efforts become increasingly impactful, we believe that adoption will increase at a meaningful rate during the year ahead,” Mr. Conroy said.

The company’s guidance for revenue and completed tests are forward-looking statements. They are subject to various risks and uncertainties that could cause the company’s actual results to differ materially from the anticipated targets. The anticipated targets are not predictions of the company’s actual performance. See the cautionary information about forward-looking statements in the “Safe-Harbor Statement” section of this press release.

Financial Results

Exact Sciences reported total revenues of $14.4 million for the fourth quarter of 2015 and total revenues of $39.4 million for the year ended Dec. 31, 2015, compared to $1.5 million and $1.8 million, respectively, for the same periods of 2014.

For the fourth quarter of 2015, Exact Sciences reported a net loss of $40.0 million, or ($0.41) per share. The company reported a net loss of $32.4 million, or ($0.38) per share, for the same period of 2014. The company’s net loss for full-year 2015 totaled $157.8 million, or ($1.71) per share. The company reported a net loss of $100.0 million, or ($1.25) a share, for the same period of 2014.

Operating expenses for the fourth quarter of 2015 were $47.2 million, compared to $30.7 million for the same period in 2014. Operating expenses for full-year 2015 totaled $174.0 million, compared to $98.0 million for full-year 2014.

Exact Sciences ended 2015 with cash, cash equivalents and marketable securities of $306.9 million, compared to $282.8 million at December 31, 2014.

Fourth-Quarter Conference Call & Webcast

As previously announced, company management will host a conference call and webcast on Wednesday, February 24, 2016, at 10 a.m. ET to discuss fourth-quarter and full-year 2015 results. The webcast will be available at www.exactsciences.com. Domestic callers should dial 877-212-6082 and international callers should dial 707-287-9332.

An archive of the webcast and a replay of the conference call will be available at www.exactsciences.com or by calling 855-859-2056 domestically or 404-537-3406 internationally. The access code for the conference call and replay is 85062957. The conference call, webcast and replay are open to all interested parties.

 

EXACT SCIENCES CORPORATION

Selected Unaudited Financial Information

Condensed Consolidated Statements of Operation Data

(Amounts in thousands, except per share data)

Three Months Ended

Twelve Months Ended

December 31,

December 31,

2015

2014

2015

2014

Laboratory service revenue

$             14,420

$              1,504

$     39,437

$       1,504

License fees

294

14,420

1,504

39,437

1,798

Cost of sales

7,667

3,401

24,501

4,325

Gross margin

6,753

(1,897)

14,936

(2,527)

Operating Expenses:

Research and development

9,365

4,992

33,914

28,669

General and administrative

15,864

10,625

57,950

30,435

Sales and marketing

21,944

15,069

82,140

38,908

47,173

30,686

174,004

98,012

Loss from operations

(40,420)

(32,583)

(159,068)

(100,539)

Investment income

491

150

1,271

542

Interest expense

(62)

(11)

(6)

(51)

Net loss

$           (39,991)

$           (32,444)

$  (157,803)

$  (100,048)

Net loss per share – basic and diluted

$              (0.41)

$              (0.38)

$       (1.71)

$       (1.25)

Weighted average common shares

outstanding – basic and diluted

96,404

84,734

92,135

80,232

 

EXACT SCIENCES CORPORATION

Selected Unaudited Financial Information

Condensed Consolidated Balance Sheet Data

(Amounts in thousands)

 December 31, 

 December 31, 

2015

2014

Assets

Cash and cash equivalents

$             41,135

$             58,131

Marketable securities

265,744

224,625

Accounts receivable, net

4,933

1,376

Inventory

6,677

4,017

Prepaid expenses and other current assets

7,641

3,528

Property and equipment, net

34,096

19,947

Other long-term assets

4,070

1,200

Total assets

$           364,296

$           312,824

Liabilities and stockholders’ equity 

Total current liabilities

$             26,723

$             17,521

Long term debt

4,852

1,000

Long term other liabilities

4,804

3,599

Long term accrued interest

106

Lease incentive obligation, less current portion

1,061

1,614

Total stockholders’ equity

326,856

288,984

Total liabilities and stockholders’ equity 

$           364,296

$           312,824

(Original Source)

Shares of Exact Sciences Corp closed yesterday at $6.41. EXAS has a 1-year high of $32.85 and a 1-year low of $5.37. The stock’s 50-day moving average is $6.58 and its 200-day moving average is $11.74.

On the ratings front, Exact Sciences has been the subject of a number of recent research reports. In a report issued on February 19, Canaccord Genuity analyst Mark Massaro maintained a Buy rating on EXAS, with a price target of $13, which represents a potential upside of 102.8% from where the stock is currently trading. Separately, on December 18, BTIG’s Sean Lavin initiated coverage with a Buy rating on the stock and has a price target of $14.

According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Mark Massaro and Sean Lavin have a total average return of -23.3% and -1.9% respectively. Massaro has a success rate of 26.0% and is ranked #3645 out of 3664 analysts, while Lavin has a success rate of 45.8% and is ranked #2759.

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).