Exact Sciences posted revenues of $199.9 million in the second quarter of 2019 and announced a $2.8 billion deal to acquire Genomic Health.
Here are six quotes from CEO and Chairman Kevin Conroy from the company's earnings call:
On the company's Genomic Health acquisition: "The combined company will have an even stronger platform for the continued growth of our leading product and the development of our pipeline. We're bringing together some of the greatest minds in cancer diagnostics to form a best-in-class commercial, research, development, and clinical organization with the global infrastructure to accelerate the availability of new innovative test to patients."
On expanding Cologuard, the company's DNA-based colorectal cancer screening test, indications: "We recently submitted a label expansion to the FDA for [the under-45 age group], which would increase the total addressable market by 19 million Americans or 3 billion for a total opportunity of $18 billion. Our long-term goal is to reach at least 40 percent of this market representing more than $7 billion in revenue."
On why Exact and Genomic are merging now: "I think there's no better time to do this than from a position of strength where we both have tremendous wind at our backs and teams that are in full stride. So, from our perspective, this is an opportunity to change that patient journey from our early detection to how treatment is guided and that is what the power of this combination really delivers."
On how Genomic will allow Exact to expand its oncology test portfolio: "We have a deep relationship with [Rochester, Minn.-based] Mayo Clinic, which has been the underpinning of our pipeline strategy, having identified biomarkers — accurate biomarkers across the top 15 cancers. This combination accelerates our ability to bring those tests to physicians and patients globally. It also accelerates, in our view, the ability to deliver many of those tests here in the U.S."
On expanding Cologuard internationally: "We think that there may be an alternative version of Cologuard that would be very amenable for the global opportunity. I think we need to think of it [as] a different size and scale of the product itself to make it more amenable and at a lower cost-of-goods basis for an international offering."
On Exact's gastrointestinal salesforce: "We just expanded our Cologuard sales force in the GI setting, adding 60 people this month that we're really excited about. [The] majority of those team members were promoted from within. We're really excited about the experiences they bring and the conversations that will begin in the GI setting."
Note: Transcript was lightly edited for clarity.
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