Exact Sciences shares rise with 15% growth in Q3 revenues

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Cancer screening and diagnostic testing firm Exact Sciences on Thursday evening reported third-quarter revenue of $523.1 million, an increase of 15% compared to $456.4 million for Q3 2021.

Its shares rose more than 17% to $38.10 in Friday morning trading on the Nasdaq.

Excluding COVID-19 revenue for the current and prior-year quarters, revenue rose 20%, the firm said. Third-quarter COVID-19 testing revenue was $10.9 million, a decrease of 64% year-over-year.

For the three-month period ended September 30, Screening segment revenue was $360.8 million, an increase of 29%, or 25% excluding revenue from its acquisition of PreventionGenetics.

Precision Oncology revenue was $151.4 million, an increase of 4%, or 9% excluding revenue for the Oncotype DX Genomic Prostate Score test, which was divested on August 2; the change was in part due to the impact of foreign currency exchange rates.

Screening revenue includes laboratory service revenue from Cologuard tests, PreventionGenetics, and immaterial revenue from Biomatrica and Oncoguard Liver products, the firm said.

Precision Oncology includes laboratory service revenue from Oncotype products and therapy selection products, including Oncomap and Oncomap ExTra, formerly known as Oncotype Map and GEM ExTra, respectively.

Exact Sciences posted a net loss of $148.8 million, or a loss of $.84 per share, compared to a loss of $166.9 million, or a loss of $.97 per share in the prior-year quarter.

"As we quickly approach profitability and make more innovative cancer tests available to patients, our Cologuard and Oncotype DX tests, best-in-class customer experience, broad sales and marketing reach, and powerful lab and technology foundation will continue to gain momentum and help achieve our vision to eradicate cancer,” Kevin Conroy, chairman and CEO of Exact Sciences, said in a statement.

On a conference call to discuss the firm’s financial results, Conroy said that additional highlights from the recently completed quarter included delivering 960,000 total tests including a record number of Cologuard and Oncotype DX results to patients.

“Our well-known tests, sophisticated patient navigation, electronic ordering and resulting platform, expansive lab capabilities and deep payer relationships will support new cancer tests with modest incremental investment,” he said. “This fuels revenue growth and profit generation, which we'll invest in better cancer test and solutions for patients. As we quickly approach profitability, this engine is set to gain momentum with each new test dropped into the platform.”

Exact Sciences' cash, cash equivalents, and marketable securities were $669.1 million at the end of the quarter.

For full-year 2022, the company anticipates revenue of $2,025 million to $2,042 million, assuming Screening segment revenue of $1,375 million to $1,382 million, Precision Oncology revenue of $595 million to $600 million, and COVID-19 testing revenue of $55 million to $60 million.

The company raised its revenue guidance from the previously expected range of $1,980 million to $2,022 million for 2022.

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