EXACT Sciences Corporation (NASDAQ:EXAS) announced that the Centers for Medicare and Medicaid Services (CMS) Advisory Panel on Clinical Diagnostic Laboratory Tests voted unanimously to maintain Medicare’s current crosswalk pricing ($492.72) for Cologuard. The 11-0 vote, including one abstention, came after the Clinical Lab Fee Schedule’s July 16, 2015 public meeting. Exact Sciences’ Chairman and CEO Kevin Conroy presented a proposal at the July 16th meeting to crosswalk Cologuard from its current G-code to a CPT code. Following today’s vote, Conroy issued this statement:
“We’re very pleased with the panel’s unanimous vote in favor of maintaining the current Medicare reimbursement for rate for Cologuard. CMS will post a preliminary determination after considering the July meeting comments, today’s panel vote, and other written comments. A final determination is expected to be released in the November timeframe and will be effective January 1, 2016.”
The Advisory Panel on Clinical Diagnostic Laboratory Tests is a new panel established under the 2014 Protecting Access to Medicare Act (PAMA), which directs the Secretary of Health and Human Services to consult with an expert outside advisory panel on establishing payment rates for new clinical diagnostic laboratory tests, including whether to use crosswalking or gapfilling processes to determine payment for new clinical laboratory tests and the factors used in determining coverage and payment processes for new clinical diagnostic laboratory tests. PAMA requires the panel to be established by the secretary and composed of an appropriate selection of individuals with expertise in issues related to clinical diagnostic laboratory tests. The panel may include representatives of clinical laboratories, molecular pathologists, clinical laboratory researchers and individuals with expertise in clinical laboratory science or health economics. Today’s meeting was the first for the panel. (Original Source)
Shares of Exact Sciences Corp opened today at $20.3 and are currently trading up at $20.61. 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 $24.55 and its 200-day moving average is $24.73.
On the ratings front, Exact Sciences has been the subject of a number of recent research reports. In a report issued on August 24, Canaccord Genuity analyst Mark Massaro maintained a Buy rating on EXAS, with a price target of $26, which implies an upside of 28.1% from current levels. 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 -12.4% and 3.6% respectively. Massaro has a success rate of 24.7% and is ranked #3673 out of 3730 analysts, while Jackson has a success rate of 60.0% and is ranked #1758.
Overall, 3 research analysts have assigned a Hold rating and 3 research analysts have given a Buy rating to the stock. When considering if perhaps the stock is under or overvalued, the average price target is $30.50 which is 50.2% above where the stock opened today.
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).