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Exact Sciences Q1 Revenues up 21 Percent

NEW YORK – Exact Sciences reported after the close of the market on Tuesday that its first quarter revenues rose 21 percent year over year.

For the three months ended March 31, the Madison, Wisconsin-based molecular diagnostics company reported revenues of $486.6 million, up from $402.1 million a year earlier, beating the average Wall Street estimate of $461.7 million.

Excluding the company's COVID-19 testing revenues, which were down 15 percent at $27.4 million, Exact said it's Q1 revenue increased 24 percent year over year.

Precision oncology revenues, which include global sales of the Oncotype DX test and Oncomap therapy selection products, were up 18 percent at $152.6 million compared to $129.4 million in Q1 2021. The company's screening revenues — mostly from Cologuard testing with some contribution from Exact's recent acquisition, PreventionGenetics — rose 28 percent to $306.5 million from $240.3 million.

Exact attributed this growth to improved sales productivity, Cologuard rescreens, and use of the test by the 45-49 age group.

On a call with investors, Exact CEO Kevin Conroy said the firm tested more than a million people globally during the quarter.

According to Conroy, sales and marketing efforts are increasing Cologuard adoption in the core 50 to 85 age group, but the test's two biggest growth drivers are the 45-49 age group and three-year rescreening.

"Screening eligible people earlier starting at age 45 and keeping them screened every three years will help address the staggering increase in colorectal cancer incidence in this age group. When compared to a 65 year-old, keeping 45 year-olds screened until they're 85 [results in] twice as much lifetime Cologuard usage," he said.

The company also saw record volume for the Oncotype DX precision oncology assay, with more than 40,000 tests performed during Q1.

Exact had also expected to launch Oncotype in Japan during the first quarter but has faced a delay due to issues with requirements for its test ordering and results-return portal mandated by the Japanese Ministry of Health.

"We did not do as good of a job as we should have done in terms of delivering on that portal, [but] the team is working very hard to deliver exactly what the Ministry of Health is asking for [and] we're confident that that will be complete by the end of this year," Conroy said.

Exact's Q1 net loss grew to $180.9 million, or $1.04 per share, from $31.2 million, or $.18 per share, in the year-ago period. Analysts had expected a loss of $1.07 per share.

The company's R&D costs for the quarter shrank about 12 percent to $102.2 million from $115.6 million in Q1 2021, while its SG&A expenses dropped 11 percent to $402 million from $453.8 million.

Exact ended the quarter with $189.8 million in cash and cash equivalents and $627.2 million in marketable securities.

The company revised its full-year 2022 revenue guidance to a new range of between $1.985 billion and $2.032 billion from a previous range of $1.975 billion to $2.027 billion.

The new range assumes screening revenues of between $1.35 billion and $1.37 billion and precision oncology revenue between $595 million and $610 million, with between $40 million and $50 million in COVID-19 testing revenues.

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