Jefferies Gives Update On Exact Sciences Corp; Raises PT To $9

Yesterday at the 2011 Digestive Disease Week extravaganza in Chicago, Exact Sciences Corp EXAS collaborator Dr. David Ahlquist of the Mayo Clinic presented initial data from the first headto-head pilot study comparing EXAS' Cologuard stool-based DNA (sDNA) test with ARUP Labs' blood-based Septin9 assay. The study, which was conducted in a blinded fashion at Mayo, involved 22 pre-cancerous polyps or adenoma samples and 30 colorectal cancer samples. With the final study protocol now under review at FDA, Exact Sciences is focused on executing the logistics to begin enrollment for the clinical trial in 3Q11. As a reminder, the study will enroll 10,000 to 12,000 patients at more than 40 qualified sites, including 50 to 60 cancer patients and 400 to 500 pre-cancer patients. EXAS expects the trial to cost ~$20M and be completed by 3Q12, followed by a PMA submission to FDA by end-2012. Jefferies has a Buy rating and $9 PT on EXAC EXAC closed Friday at $7.50