3 Reasons for Exact Sciences’ Stock Jumping 33% on Tuesday
Exact Sciences (EXAS) stock jumped 33% on Tuesday following a major announcement. The company:
1. Hired a Baird Research Assistant
The company announced that it had hired a former Baird research assistant for a key role in the company. Jeff Elliott, the research assistant, has been placed in a position with the company to seek out strategic business opportunities.
2. Saw Stock Prices Decline
The company’s stock prices have been on a downward spiral since it released a colon cancer screening test called Cologuard. Shares fell from $27.50 in 2015 down to under $7.5 per share in 2016.
The rally is a readjustment for the company’s stock and a rebound that investors have been highly anticipating.
3. Hopes to Double Sales of Cologuard
Cologuard has struggled because the test has had issues with reimbursement. The challenge has become less of an issue as Exact Sciences forecasts sales of the test going from $39.4 million in 2015 to a minimum of $90 million in 2016.
Exact Sciences is still pegged to lose money this year, which remained a concern among investors. The company has an operating cost of $214 million, which will overshadow the projected sales boost of Cologuard.
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