Basis van Exact Science /marketing is gelegd in 3 de kwartaal .
Vanaf 4de kwartaal gaat de trein van start . ( indirect dus ook voor MDX/royalties )
Exact Sciences: Q3 Marketing Efforts Look Promising
Oct. 28, 2014 5:22 PM ET | About: EXACT Sciences Corporation (EXAS)
Disclosure: The author is long EXAS. (More...)
Summary
EPS missed by 7 cents but is not a significant measure of the company's value.
Over 5,000 physicians have signed up to order Cologuard.
Marketing with physicians has gone extremely well with an overwhelming amount of physicians being open to ordering Cologuard.
Exact Sciences (NASDAQ:EXAS) reported Q3 earnings October 27th, 2014. The company reported an EPS of $0.39 which missed estimates by 7 cents, and the company's stock immediately dropped 5% after the announcement. This quick drop in share price presented a great buying opportunity as the shares recovered the entire 5% drop by the end of the day. Investors that looked at the financial aspect of Exact Science's quarter missed the point.
Other Q3 Fundamentals:
Market cap stands at $2.0 billion
Cash and marketable securities increased to $211.1 million
Long term debt stands at only $1.0 million
The important part about Q3 earnings was how Exact Sciences was marketing Cologuard. From what I've seen in this earnings report, I'm encouraged and glad I was able to add shares to my position during the 5% dip that took place.
Highlights:
Exact Science's field sales team consists of about 120 people. 10 reps who call on large systems and group practices, 80 reps calling primary care physicians, 10 area managers, and six people that are responsible for medical education.
The advertising campaign for Cologuard has reached out to an estimated 6.5 million, thanks to highly targeted digital ads and emails.
An estimated 90% of physicians find Cologuard compelling because they know that there is a need for a new way of acute screening for colorectal cancer.
Cologuard has been featured on national news and media outlets on multiple occasions, including "The Wallstreet Journal", "New York Times", "The Today's Show", and "The Doctors".
Over 5,000 physicians have been enrolled to use Cologuard, exceeding expectations already for 2014 estimates. This is the piece of news that I believe should be the focal point of the Q3 earnings report. This shows that physicians are interested and would be willing to utilize Cologuard as an acute test before performing a colonoscopy.
Management announced the goal of this marketing campaign is to enroll at least 100,000 physicians to use Cologuard and eventually reach 200,000.
Management also hinted at creating business with physicians and continuing business down the road with other products in the companies pipeline.
One rep was said to have 90 consecutive primary care conversation wins before one physician said no.
I think the initial marketing strategy is proving very effective. Cologuard is being received with a warm welcome by physicians and this trend is just beginning. 5,000 physicians already ordering Cologuard, after about one month of it being approved for Medicare and Medicaid, is extremely promising. Company management has been extremely proactive in moving Cologuard along since FDA approval.
I think this Q3 earnings news is helping to reveal Exact Science's true value, and make this speculative biotech company much more attractive. I am willing to speculate and say Exact Sciences is undervalued, because I think once people break down this earnings report, they will realize the many marketing positives that came out of it.