2024-04-02 11:58:20 ET
Summary
- EXAS has a unique regulatory advantage as the FDA and Congress work on extending the regulatory arm over the gene diagnostics sector.
- Cologuard remains EXAS's growth engine going into 2024.
- Revaluation in the gene diagnostics sector means that EXAS might not be the most attractive option going into 2024.
Investment Thesis
Every time I look at Exact Sciences Corporation ( EXAS ), I chuckle at their name. Gene lab tests usually deal with probabilities, not certainties. So results aren't really 'exact.' You'll notice this when looking at Cologuard, their Colorectal Cancer 'CRC' screening test. It's about 92% accurate, leaving some margin of error, and in 13% of cases, it will say a patient has cancer when, in fact, they don't. And that's a screening test, so you can imagine the accuracy of "assess your cancer risk" kits sold by Myriad Genetics, Inc. ( MYGN ) and 23andMe Holding Co. ( ME ).
The New York Times and the FDA talked about this last June, so we won't dig deep into details except to say that EXAS is in a better position than the others....
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For further details see:
Exact Sciences: Cancer Battle Continues, Shares Likely To Plateau