Exact Sciences Set To Dominate Emerging Precision Oncology Market: Analyst Applauds $18B Potential Market

Benchmark analyst Bruce D. Jackson reiterated a Buy rating on the shares of Exact Sciences Corporation EXAS, raising the price target to $96.

A series of recently completed acquisitions position the company to participate meaningfully in the emerging market for precision oncology testing in the longer term, mentions the analyst. 

The cancer screening and diagnostics company said its Cologuard test demonstrated 94% sensitivity for colorectal cancer at 91% specificity. 

Management remains confident about future growth prospects for Cologuard and its new product programs, setting a 2022-2027 revenue CAGR target of 15%, notes Jackson. 

The next step for the next generation Cologuard test is to complete the FDA submission package, which is planned for late 2023, the analyst notes. 

Analysis of the data for Exact Science's blood-based colorectal cancer test is slated for 2024, Jackson adds. 

The analyst applauds Exact Sciences' total addressable market. Cologuard addresses an $18 billion potential market with a less invasive test compared to currently available colorectal cancer screening alternatives. 

Removal of unfavorable reimbursement for follow-up colonoscopy should provide a tailwind in 2023, Jackson adds.

Citigroup analyst Patrick Donnelly maintained Exact Sciences with a Buy and raised the price target from $100 to $130.

Price Action: EXAS shares are trading higher by 5.3% to $94.55 on the last check Thursday.