Healthcare Industry News: Cologuard
News Release - July 26, 2016
Exact Sciences Completes 54,000 Cologuard Tests during the Second QuarterMADISON, Wis., July 26, 2016 -- (Healthcare Sales & Marketing Network) -- Exact Sciences Corp. (EXAS) today announced that the company generated revenues of $21.2 million during the second quarter ended June 30, 2016, representing a 161-percent increase from $8.1 million in the second quarter of 2015. The company completed approximately 54,000 Cologuard tests during the second quarter, an increase of approximately 160 percent compared to the 21,000 tests completed during the same period of 2015. Since Cologuard's launch and through the end of the second quarter of 2016, approximately 41,000 physicians have ordered the test.
"Continued execution of our sales and direct-to-consumer marketing strategies during the second quarter drove an increase in new physicians ordering Cologuard and broader patient awareness and demand for our non-invasive colon cancer screening test," said Kevin Conroy, chairman and CEO of Exact Sciences. "As a result, we delivered another strong quarterly financial performance, highlighted by robust annualized revenue growth, a sequential increase in completed tests that exceeded our expectations, and solid expense control and favorable cash utilization."
The company's direct-to-consumer marketing strategy combines a targeted internet and social media-based effort with a national television advertising campaign. During the second half of the year, the company will continue to invest in both to drive further physician and patient awareness of Cologuard.
Increasing commercial insurance coverage of Cologuard remains a key component of Exact Sciences' growth strategy. During the second quarter, the U.S. Preventive Services Task Force issued its final recommendations for colorectal cancer screening, which assigned an A grade for screening average-risk individuals ages 50 to 75. Cologuard is listed among the seven screening methods recommended by the task force.
"We anticipate that Cologuard's position in the final recommendations will have a meaningful, positive long-term effect on our efforts to expand commercial insurance coverage," Mr. Conroy said. "Commercial insurers typically cover cancer screening tests recommended by the task force and we are engaged in active discussions with insurers to cover Cologuard."
Cologuard is covered for 58 percent of its estimated total addressable population, men and women between the ages of 50 and 85 at average risk of colon cancer.
Cologuard's patient compliance rate was 68 percent as of June 30, 2016. The compliance rate is derived from the number of valid tests reported divided by the number of collection kits shipped to patients during the 12-month period ending 60 days prior to June 30, 2016. Cologuard's compliance rate may vary from quarter to quarter, reflecting, among other factors, changes in the mix of the insurance coverage of patients completing the test.
The company continues to anticipate completing more than 240,000 Cologuard tests during 2016, generating revenue of $90 to $100 million.
The company's guidance for revenue and completed tests are forward-looking statements. They are subject to various risks and uncertainties that could cause the company's actual results to differ materially from the anticipated targets. See the cautionary information about forward-looking statements in the "Safe-Harbor Statement" section of this news release.
Source: Exact Sciences
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