Why Exact Sciences Share Are Falling Today?

Exact Sciences Corp EXAS has put down $190 million to buy testing laboratory PreventionGenetics, aiming to expand its diagnostics franchise into hereditary cancer screening.

• PreventionGenetics offers more than 5,000 DNA tests, including germline and whole-exome sequencing panels, to help users identify potential risks they may have inherited for developing cancer or other diseases.
• Calling the deal a "natural fit," Exact Sciences CEO Kevin Conroy said the Company's genetic tests would help catch tumors earlier when treatments can be more effective. 
• They will be offered alongside Exact's at-home colon cancer screener Cologuard and its Oncotype DX breast cancer test.
• The closed deal was split 50-50 in cash and stock. The companies estimate PreventionGenetics will report about $36 million in revenue for the full year of 2021.
• Exact Sciences, meanwhile, offered a preliminary look at its Q4 FY21 and FY21 earnings. 
• The Company expects Q4 sales of $472 million - $475 million and about $1.76 billion for all of 2021, in line with its previous estimates.
• As COVID-19 revenues declined throughout 2021, dropping by 39% compared to 2020, the Company's other precision oncology and screening programs rebounded with 29% growth.
• "The Exact Sciences team delivered outstanding results to finish 2021, setting us up for years of strong growth and a clear path to profitability," Conroy said in a statement. 
• Separately, Exact Sciences signed a licensing deal with OncXerna Therapeutics to bring the precision medicine company's tumor microenvironment panel into its fold.
• Price Action: EXAS shares are down 6.97% at $70.41 during the market session on the last check Monday.