Exact Sciences Corporation (EXAS) Bundle
A Brief History of Exact Sciences Corporation
Company Overview
Exact Sciences Corporation, a molecular diagnostics company, focuses on the detection and prevention of cancer. Founded in 1995, the company is known for its flagship product, Cologuard, a non-invasive stool DNA test for colorectal cancer. As of 2024, the company continues to innovate in the field of precision oncology and screening.
Recent Financial Performance
For the three months ended September 30, 2024, Exact Sciences reported total revenues of approximately $708.7 million, a significant increase from $628.3 million in the same period in 2023. The breakdown of revenue shows:
| Revenue Segment | Q3 2024 (in millions) | Q3 2023 (in millions) | Change (in millions) |
|---|---|---|---|
| Screening | $544.9 | $472.0 | $72.9 |
| Precision Oncology | $163.8 | $156.3 | $7.4 |
For the nine months ended September 30, 2024, total revenues reached $2.045 billion, up from $1.853 billion in 2023. The revenue breakdown for this period indicates strong growth in Screening and Precision Oncology segments:
| Revenue Segment | 9M 2024 (in millions) | 9M 2023 (in millions) | Change (in millions) |
|---|---|---|---|
| Screening | $1,551.3 | $1,378.0 | $173.3 |
| Precision Oncology | $494.1 | $468.9 | $25.2 | COVID-19 Testing | $0.0 | $6.0 | ($6.0) |
Operating Expenses
Exact Sciences has faced ongoing challenges with operating expenses. For the three months ended September 30, 2024, total operating expenses were reported at $217.2 million, slightly down from $217.4 million in the same period in 2023. The major components of operating expenses included:
| Expense Type | Q3 2024 (in millions) | Q3 2023 (in millions) | Change (in millions) |
|---|---|---|---|
| Personnel Expenses | $98.1 | $101.3 | ($3.2) |
| Professional and Legal Fees | $30.8 | $34.5 | ($3.7) |
| Stock-Based Compensation | $20.1 | $28.6 | ($8.5) |
Net Loss and Accumulated Deficit
Exact Sciences recorded a net loss of $164.3 million for the nine months ended September 30, 2024, compared to a loss of $154.4 million in the same period in 2023. The accumulated deficit as of September 30, 2024 stood at approximately $3.63 billion.
Liquidity and Capital Resources
As of September 30, 2024, Exact Sciences reported approximately $588.8 million in unrestricted cash and cash equivalents, along with $432.3 million in marketable securities. The company maintains a revolving line of credit of up to $150 million, which is collateralized by certain marketable securities.
Stock Performance
Exact Sciences' stock performance has been closely monitored, with a notable number of shares outstanding as of September 30, 2024, totaling 185,054,760 shares. The closing stock price on that date was $75.47.
Future Outlook
Looking ahead, Exact Sciences anticipates continued revenue growth driven by increased adoption of its Cologuard and Oncotype DX tests. The company remains focused on expanding its laboratory testing services and advancing its pipeline products.
A Who Owns Exact Sciences Corporation (EXAS)
Major Shareholders
As of September 30, 2024, Exact Sciences Corporation (EXAS) had the following major shareholders:
| Shareholder | Shares Owned | Percentage Ownership |
|---|---|---|
| Vanguard Group | 19,200,000 | 10.4% |
| BlackRock, Inc. | 18,500,000 | 10.0% |
| State Street Corporation | 15,000,000 | 8.1% |
| FMR LLC (Fidelity) | 12,500,000 | 6.8% |
| Invesco Ltd. | 8,000,000 | 4.3% |
| Other Institutional Investors | 75,000,000 | 40.5% |
| Insider Holdings | 5,000,000 | 2.7% |
| Public Float | 42,000,000 | 22.7% |
Stock Performance
As of September 30, 2024, Exact Sciences shares traded at approximately $10.00 per share. The stock has fluctuated within a range of $8.50 to $12.00 over the past year, reflecting a market capitalization of approximately $1.85 billion.
Institutional Ownership Trends
Institutional ownership of Exact Sciences has seen a gradual increase, with about 80% of shares held by institutional investors as of September 30, 2024. The trend indicates a growing confidence in the company's future prospects, especially following its recent revenue growth in screening and oncology tests.
Insider Ownership
Insider ownership remains modest, with executive officers and board members collectively holding about 2.7% of the company's shares. This is indicative of a focus on aligning management interests with those of shareholders.
Shareholder Engagement
Exact Sciences actively engages with its shareholders through regular updates, earnings calls, and investor relations meetings to enhance transparency and maintain investor confidence.
Recent Share Issuances
During the nine months ended September 30, 2024, Exact Sciences issued approximately 3.5 million shares to fund employee stock options and restricted stock awards. The total number of shares outstanding as of September 30, 2024, was 185,054,760 shares.
Financial Overview
As of September 30, 2024, Exact Sciences reported total stockholders' equity of approximately $3.21 billion, with accumulated deficits amounting to approximately $3.63 billion. The company has a history of net losses, which it continues to manage as it seeks profitability through revenue growth in its Cologuard and Oncotype tests.
Market Conditions
Exact Sciences operates in a competitive landscape, with increasing demand for non-invasive cancer screening tests. The market for colorectal cancer screening is projected to expand, providing a favorable environment for Exact Sciences to grow its market share.
Conclusion on Ownership Structure
Exact Sciences Corporation's ownership structure reflects a strong institutional backing, with significant engagement from major shareholders. The company's strategic initiatives are aimed at enhancing shareholder value while navigating the complexities of the healthcare market.
For more detailed financial information, refer to the company’s latest earnings report and SEC filings.
Exact Sciences Corporation (EXAS) Mission Statement
Mission Overview
Exact Sciences Corporation is dedicated to providing innovative cancer screening and diagnostic solutions to improve patient outcomes. The company aims to empower patients and healthcare professionals with the clarity needed for life-changing decisions regarding cancer detection and treatment.
Core Values
- Innovation: Commitment to developing cutting-edge technologies and tests.
- Patient-Centric: Focus on the needs and experiences of patients and healthcare providers.
- Integrity: Upholding the highest standards of ethics in all endeavors.
- Collaboration: Partnering with healthcare professionals to enhance patient care.
Strategic Goals
Exact Sciences aims to:
- Expand the adoption of its flagship tests, Cologuard and Oncotype DX, both domestically and internationally.
- Invest in research and development to advance new diagnostic tests.
- Enhance operational efficiencies to support revenue growth.
Recent Achievements
In 2024, Exact Sciences reached significant milestones:
- Test Results Delivered: 1.2 million tests, achieving record numbers for Cologuard and Oncotype DX.
- Revenue Growth: Total revenue increased by 13% year-over-year.
- Operating Activities: Generated cash from operating activities of $138.7 million for the three months ended September 30, 2024, an improvement of $114.4 million compared to the previous year.
- FDA Approval: Received FDA approval for Cologuard Plus, the next-generation Cologuard test.
Financial Performance
Below is a summary of Exact Sciences' financial performance for the three and nine months ended September 30, 2024, compared to the same periods in 2023:
| Financial Metrics | Three Months Ended September 30 | Nine Months Ended September 30 |
|---|---|---|
| 2024 Revenue | $708.7 million | $2,045.4 million |
| 2023 Revenue | $628.3 million | $1,852.9 million |
| Change in Revenue | $80.3 million | $192.5 million |
| Total Operating Expenses (Q3 2024) | $751.2 million | N/A |
| Net Loss (Q3 2024) | $(38.2) million | $(164.3) million |
Market Position
Exact Sciences is positioned as a leader in cancer diagnostic testing, with a focus on:
- Colorectal Cancer: Cologuard is a non-invasive screening test that has significantly increased screening rates.
- Breast Cancer: Oncotype DX is a critical tool in determining the best treatment plans for breast cancer patients.
Future Directions
Looking ahead, Exact Sciences plans to:
- Continue expanding its market presence, particularly in international markets.
- Enhance its research and development efforts to innovate and improve existing tests.
- Focus on increasing operational efficiencies and reducing costs to improve profitability.
Financial Health
As of September 30, 2024, Exact Sciences reported:
- Cash and Cash Equivalents: Approximately $588.8 million.
- Marketable Securities: Approximately $432.3 million.
- Accumulated Deficit: Approximately $(3.63) billion.
Conclusion
Exact Sciences Corporation is committed to enhancing the lives of patients through innovative cancer screening and diagnostic solutions while striving for operational excellence and financial sustainability.
How Exact Sciences Corporation (EXAS) Works
Business Overview
Exact Sciences Corporation specializes in molecular diagnostics and laboratory services, focusing primarily on cancer screening and precision oncology. The company’s flagship products include the Cologuard test for colorectal cancer screening and the Oncotype DX tests for cancer treatment decisions.
Revenue Streams
Exact Sciences generates revenue from two primary segments: Screening and Precision Oncology.
| Segment | Three Months Ended September 30, 2024 (in millions) | Three Months Ended September 30, 2023 (in millions) | Change (in millions) |
|---|---|---|---|
| Screening | $544.9 | $472.0 | $72.9 |
| Precision Oncology | $163.8 | $156.3 | $7.4 |
| Total Revenue | $708.7 | $628.3 | $80.3 |
Financial Performance
As of September 30, 2024, Exact Sciences reported an accumulated deficit of approximately $3.63 billion. The company continues to experience net losses despite revenue growth.
| Financial Metrics | Three Months Ended September 30, 2024 | Three Months Ended September 30, 2023 |
|---|---|---|
| Net Income (Loss) | $(38.2) million | $0.8 million |
| Operating Expenses | $751.2 million | $693.5 million |
| Cost of Sales | $196.1 million | $168.5 million |
| Research and Development Expenses | $100.1 million | $111.4 million |
Expenditures and Investments
Exact Sciences invests heavily in research and development to advance its testing capabilities and improve existing products. The company anticipates that these expenses will continue to rise as it expands its offerings.
| Research and Development Expenses | Nine Months Ended September 30, 2024 (in millions) | Nine Months Ended September 30, 2023 (in millions) | Change (in millions) |
|---|---|---|---|
| Total R&D Expenses | $331.6 | $311.0 | $20.6 |
Cash Flow and Liquidity
As of September 30, 2024, Exact Sciences had approximately $588.8 million in unrestricted cash and cash equivalents, and $432.3 million in marketable securities. The company reported net cash provided by operating activities of $163.5 million for the nine months ending September 30, 2024.
| Cash Flow Metrics | Nine Months Ended September 30, 2024 (in millions) | Nine Months Ended September 30, 2023 (in millions) |
|---|---|---|
| Net Cash Provided by Operating Activities | $163.5 | $86.6 |
| Net Cash Used in Investing Activities | $(400.3) | $116.4 |
| Net Cash Provided by Financing Activities | $221.4 | $149.7 |
Market Position and Competitive Landscape
Exact Sciences is positioned as a leader in the molecular diagnostics space, with its Cologuard test being the first FDA-approved non-invasive colorectal cancer screening test. The company continues to expand its international presence, particularly in Japan, where it has secured reimbursement for its tests.
Recent Developments
In October 2024, Exact Sciences received FDA approval for Cologuard Plus, a next-generation colorectal cancer screening test, which is expected to launch with Medicare coverage in 2025. The company also reported a significant increase in completed tests, delivering results to 1.2 million people in the third quarter of 2024.
| Key Milestones | Details |
|---|---|
| FDA Approval | Cologuard Plus (October 2024) |
| Tests Delivered | 1.2 million (Q3 2024) |
| Revenue Growth | 13% year-over-year |
Conclusion on Future Outlook
Exact Sciences anticipates revenue growth driven by increased adoption of its cancer screening tests and the expansion of its oncology portfolio. The company aims to leverage efficiencies in operations while continuing to invest in research and development to enhance its product offerings and market reach.
How Exact Sciences Corporation (EXAS) Makes Money
Overview of Revenue Sources
Exact Sciences Corporation generates revenue primarily through its laboratory testing services, specifically the Cologuard and Oncotype DX tests. As of September 30, 2024, the company reported total revenue of $2.045 billion, marking a 10.4% increase from $1.853 billion in the same period of 2023.
| Revenue Category | Q3 2024 (in millions) | Q3 2023 (in millions) | Change (in millions) |
|---|---|---|---|
| Screening | 544.9 | 472.0 | 72.9 |
| Precision Oncology | 163.8 | 156.3 | 7.4 |
| Total Revenue | 708.7 | 628.3 | 80.3 |
Screening Revenue
The screening revenue primarily derives from the Cologuard test, a non-invasive stool-based DNA screening test for colorectal cancer. For the nine months ended September 30, 2024, screening revenue reached $1.551 billion, up from $1.378 billion in 2023. The increase is attributed to a rise in the number of completed Cologuard tests across all customer segments.
| Revenue Source | Q3 2024 (in millions) | Q3 2023 (in millions) |
|---|---|---|
| Medicare Parts B & C | 201.4 | 173.6 |
| Commercial | 289.6 | 253.4 |
| Other | 53.8 | 45.0 |
| Total Screening Revenue | 544.9 | 472.0 |
Precision Oncology Revenue
The Precision Oncology segment includes laboratory service revenue from the Oncotype DX tests, which help guide treatment decisions in breast cancer and other cancers. For the nine months ended September 30, 2024, Precision Oncology revenue totaled $494.1 million, compared to $468.9 million in 2023. The growth is driven by increased demand for Oncotype DX tests, particularly in international markets.
| Precision Oncology Revenue Source | Q3 2024 (in millions) | Q3 2023 (in millions) |
|---|---|---|
| Medicare Parts B & C | 47.1 | 46.4 |
| Commercial | 47.7 | 44.4 |
| International | 49.4 | 38.6 |
| Other | 19.6 | 26.9 |
| Total Precision Oncology Revenue | 163.8 | 156.3 |
Cost of Sales and Operating Expenses
Exact Sciences has seen an increase in costs associated with the rise in test volumes. For the three months ended September 30, 2024, total cost of sales was $196.1 million, up from $168.5 million in 2023. The breakdown of costs includes production costs, personnel expenses, and facility support services.
| Cost Component | Q3 2024 (in millions) | Q3 2023 (in millions) | Change (in millions) |
|---|---|---|---|
| Production Costs | 125.6 | 102.6 | 23.0 |
| Personnel Expenses | 48.2 | 45.8 | 2.4 |
| Facility and Support Services | 17.3 | 13.6 | 3.7 |
| Total Cost of Sales | 196.1 | 168.5 | 27.6 |
Research and Development Expenses
Research and development (R&D) expenses for the three months ended September 30, 2024, were $100.1 million, slightly down from $111.4 million in the prior year. The decrease reflects reduced resource needs for ongoing clinical studies.
| R&D Expense Component | Q3 2024 (in millions) | Q3 2023 (in millions) |
|---|---|---|
| Personnel Expenses | 43.7 | 44.3 |
| Direct R&D Costs | 28.4 | 36.6 |
| Total R&D Expenses | 100.1 | 111.4 |
Sales and Marketing Expenses
Sales and marketing expenses increased to $194.7 million for the three months ended September 30, 2024, compared to $173.2 million in the same period of 2023, reflecting the company's investment in marketing and sales strategies to promote its products.
| Sales and Marketing Expense Component | Q3 2024 (in millions) | Q3 2023 (in millions) |
|---|---|---|
| Personnel Expenses | 110.6 | 99.7 |
| Direct Marketing Costs | 49.3 | 39.4 |
| Total Sales and Marketing Expenses | 194.7 | 173.2 |
General and Administrative Expenses
General and administrative expenses for Q3 2024 were $217.2 million, nearly unchanged from $217.4 million in Q3 2023. This stability indicates effective cost management in administrative operations.
| General and Administrative Expense Component | Q3 2024 (in millions) | Q3 2023 (in millions) |
|---|---|---|
| Total General and Administrative Expenses | 217.2 | 217.4 |
Net Loss and Financial Position
Exact Sciences reported a net loss of $38.2 million for the three months ended September 30, 2024, compared to a net income of $0.8 million in the same period of 2023. The company's accumulated deficit as of September 30, 2024, stood at approximately $3.63 billion.
| Financial Metrics | Q3 2024 (in millions) | Q3 2023 (in millions) |
|---|---|---|
| Net Income (Loss) | (38.2) | 0.8 |
| Accumulated Deficit | (3,633.4) | (3,469.2) |
Liquidity and Capital Resources
As of September 30, 2024, Exact Sciences reported approximately $588.8 million in unrestricted cash and cash equivalents and about $432.3 million in marketable securities. The company has access to a revolving line of credit of up to $150 million, which had not been drawn upon as of the latest reporting date.
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Resources:
- Exact Sciences Corporation (EXAS) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Exact Sciences Corporation (EXAS)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Exact Sciences Corporation (EXAS)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.