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Exact Sciences to Raise $17.6M in Public Offering

By a GenomeWeb staff reporter

NEW YORK (GenomeWeb News) – Exact Sciences today said that it expects to raise approximately $17.6 million through a public offering of 4.2 million shares of its common stock priced at $4.50 per share.

The Madison, Wis.-based molecular diagnostics firm said that if the underwriters of the offering exercise the option to purchase an additional 630,000 shares, it would receive total net proceeds of around $20.3 million.

The firm said that it intends to use the funds for "strategic initiatives" that it may "undertake from time to time," though it didn't provide further details. In addition, Exact Sciences said that it would use the proceeds for product development initiatives and to further its efforts to obtain US Food and Drug Administration clearance of its stool-based DNA colorectal cancer screening product.

"We believe obtaining FDA clearance is critical to building broad demand and successful commercialization of our sDNA colorectal cancer screening technologies," the firm said in its prospectus filed with the US Securities and Exchange Commission last night. "We are exploring the marker combinations and platform requirements necessary for optimal performance of or technology based on market need."

Though Exact Sciences said that it believes it has sufficient capital to fund operations for at least the next 12 months, it does not have enough money, even after taking into account the expected proceeds from this offering, to fully fund commercial development of the sDNA colorectal cancer test. It said that the path to FDA clearance "is likely to take significant time and require significant research, development, and clinical study expenditures." As a result, the firm could potentially seek to raise more funds through the sale of additional equity.

Following completion of the offering, Exact Sciences will have roughly 40 million shares outstanding.

In early trade on the Nasdaq, shares of Exact Sciences were down nearly 3 percent at $4.57.

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