Strategic Valuation 1 - Exact Sciences Corporation

Strategic Valuation

• 17 november 2017
• 9781386562634

Samenvatting:

Exact Sciences Corporation (EXAS) is a publicly traded molecular diagnostics company focused on the early detection and prevention of colon cancer. EXAS has developed, and currently commercializes the Cologuard test, a non-invasive stool-based deoxyribonucleic acid screening test designed to detect DNA markers for colorectal cancer.

At the end of 2015, Cologuard's first full year on the market, EXAS completed 104,000 tests from 27,000 ordering physicians and realized revenue of $39 million. In 2016, the company completed 244,000 tests and realized revenue of $99 million. EXAS expects to complete 240,000 tests in 2017 and to achieve revenue of $256 million, an increase of 260% over 2016. Current average revenue per test is estimated at $428 and current average cost per test is estimated at $129, which gives the company a respectable operating margin.

EXAS share price quadrupled in 2017 and the company is currently valued at $7 billion, a 27 times price-to-sales ratio. EXAS has generated significant losses since its inception and expects to continue to incur losses for the near future.

This Strategic Valuation Report examines current company situation, analysis its value proposition and makes an educated guess of a target price point achievable over the next 18 months. The report is of value to stock and options traders alike, as well as long term investors, hedge fund managers and anyone interested in entering or exiting this stock.