On August 1, 2018 Exact Sciences Corp. (Nasdaq: EXAS) reported that the company generated revenue of $102.9 million and completed approximately 215,000 Cologuard tests during the quarter ended June 30, 2018 (Press release, Exact Sciences, AUG 1, 2018, View Source [SID1234528655]). Second-quarter 2018 revenue and Cologuard test volume grew by 78 percent and 59 percent, respectively, from the same period of 2017.
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"We are excited about the continued growth of our physician ordering base, as well as their increasing Cologuard utilization, which led to a record quarter for revenue, volume and gross profit," said Kevin Conroy, chairman and CEO of Exact Sciences. "We are optimistic about the company’s future, including the opportunity to expand Cologuard’s label to reach even more people in the 45 to 49 age group, given the American Cancer Society’s recent guideline update."
Second-Quarter 2018 Financial Results
For the three-month period ended June 30, 2018, as compared to the same period of 2017 (where applicable):
· Revenue was $102.9 million, an increase of 78 percent, and test volume was 215,000, an increase of 59 percent
· Average recognized revenue per test was $479, an improvement of 12 percent
· Average cost per test was $125, an improvement of 6 percent
· Gross margin was 74 percent, an increase of 510 basis points
· Operating expenses were $108.7 million, an increase of 53 percent
· Net loss was $36.4 million or $0.30 per share, compared to $30.8 million or $0.27 per share
· Non-cash interest expense related to convertible debt was $6.7 million, or $0.05 per share
· Cash utilization was $45.3 million, compared to $43.9 million
· Cash, cash equivalents and marketable securities were $1.2 billion at the end of the quarter
· More than 10,000 healthcare providers ordered their first Cologuard test during the second quarter, and nearly 121,000 have ordered since the test was launched
2018 Outlook
· The company continues to anticipate revenue of $420-$430 million for 2018
The company’s guidance for revenue is a forward-looking statement. It is subject to various risks and uncertainties that could cause the company’s actual results to differ materially from the anticipated targets. There can be no assurance the company will meet these financial projections. See the cautionary information about forward-looking statements in the "Safe Harbor Statement" section of this press release.
Second-Quarter Conference Call & Webcast
Company management will host a conference call and webcast on Wednesday, Aug. 1, 2018, at 5 p.m. ET to discuss second-quarter 2018 results. The webcast will be available at www.exactsciences.com. Domestic callers should dial 877-201-0168 and international callers should dial +1-647-788-4901.
An archive of the webcast will be available at www.exactsciences.com. A replay of the conference call will be available by calling 800-585-8367 domestically or 416-621-4642 internationally. The access code for the replay of the call is 4260268. The webcast, conference call and replay are open to all interested parties.
About Cologuard
Cologuard was approved by the FDA in August 2014 and results from Exact Sciences’ prospective 90-site, point-in-time, 10,000-patient pivotal trial were published in the New England Journal of Medicine in March 2014. Cologuard is included in the American Cancer Society’s (2014) colorectal cancer screening guidelines and the recommendations of the U.S. Preventive Services Task Force (2016) and National Comprehensive Cancer Network (2016). Cologuard is indicated to screen adults of either sex, 50 years or older, who are at average risk for colorectal cancer. Cologuard is not for everyone and is not a replacement for diagnostic colonoscopy or surveillance colonoscopy in high-risk individuals. False positives and false negatives do occur. Any positive test result should be followed by a diagnostic colonoscopy.
Following a negative result, patients should continue participating in a screening program at an interval and with a method appropriate for the individual patient. Cologuard performance when used for repeat testing has not been evaluated or established. Medicare and most major insurers cover Cologuard. For more information about Cologuard, visit www.cologuardtest.com. Rx Only.