NEW YORK – Exact Sciences reported on Tuesday after the close of the market that its preliminary first quarter revenues are expected to rise about 115 percent, despite the negative impact of the COVID-19 pandemic on orders for its Cologuard colorectal cancer screening test.
In an 8-K filing with the US Securities and Exchange Commission, the company said that it expects total revenues of approximately $348 million compared to $162 million a year earlier. Screening revenues from Cologuard rose 35 percent to approximately $219 million, and precision oncology revenues rose 18 percent to approximately $128 million versus pro forma Q1 2019.
The company had cash, cash equivalents, and marketable securities of $1.2 billion at the end of the quarter.
Due to social distancing, stay-at-home orders, and other actions taken in response to the COVID-19 pandemic, Exact said it has seen a significant and widespread decline in standard wellness visits and preventive services that has negatively affected Cologuard test orders, despite the availability of alternative ordering channels such as telehealth. Through the end of February, Cologuard revenues were tracking consistently with the company's original first quarter guidance range of $230 million to $235 million. But from March 15 through March 31 and during the first 20 days of April, Cologuard test orders decreased 36 percent and 63 percent year-over-year, respectively. During April, Exact said the year-over-year decline in Cologuard test orders appears to have stabilized.
Further, after delivering strong results in the first quarter, the precision oncology business is also starting to see weakening underlying conditions because of the pandemic, most notably in the US prostate business and in certain international geographies. The company said it expects the widespread decrease in preventive services, such as mammograms and prostate cancer screenings, to negatively affect precision oncology test volumes in the coming months.
However, Exact also noted that its testing labs have been operating throughout the pandemic, they remain operational, and business continuity plans are in place at all sites to help sustain operations.
The company's labs are also providing COVID-19 testing on a limited basis under a public-private partnership initiated by the State of Wisconsin to increase its laboratory testing capacity for COVID-19. The company also recently received Emergency Use Authorization from the US Food and Drug Administration for its own in vitro diagnostic assay for the detection of SARS-CoV-2.
In addition, Exact reported that it received $24 million of funding under the CARES Act in April, and that it has initiated several cost-saving measures intended to save more than $400 million in 2020.
Although it had previously withdrawn its annual guidance for 2020, the company said it does intend to provide an updated outlook when it reports full first quarter financial results on May 6.