Latest news with #Freenome
Yahoo
07-08-2025
- Business
- Yahoo
Exact Sciences Dip A Chance To Buy As Freenome Deal Fortifies Future: Analyst
Exact Sciences Corp. (NYSE:EXAS) on Thursday reported a second-quarter 2025 EPS loss of 1 cent, up from a 9-cent loss a year ago, beating the analyst consensus loss estimate of 19 cents. Revenues increased to $811.085 million, beating the consensus of $774.34 million. Sales jumped 16% on a reported and core revenue basis, including Screening revenue of $628 million and Precision Oncology revenue of $183 margin was 69%, and adjusted gross margin was 72%. In addition, Exact Sciences shared initial results from an internal version of its colorectal cancer (CRC) blood test, showing sensitivities of 73% for CRC and 14% for APL at 90% specificity. Internal testing and evaluation of the assay are ongoing. Outlook Exact Sciences raised its fiscal 2025 sales guidance from $3.07 billion-3.12 billion to $3.13 billion-$3.17 billion versus the consensus of $3.099 billion. The guidance includes a Screening segment sales forecast of $2.44 billion-$2.47 billion, compared to previous guidance of $2.39 billion-$2.43 billion. Precision Oncology sales are expected to be $690 million-$700 million, compared to prior guidance of $680 million-$695 million. The company expects 2025 adjusted EBITDA of $455 million-$475 million, up from previous guidance of $425 million-$455 million. M&A Deal Exact Sciences on Thursday agreed to acquire exclusive rights in the United States to current and future versions of Freenome's blood-based, single-indication colorectal cancer (CRC) screening tests. View more earnings on EXAS Complete findings from the prospective PREEMPT study were recently published in JAMA. Results show Freenome's first version test achieved sensitivities of 81% for CRC and 14% for advanced precancerous lesions (APL) at specificity of 90%. Freenome recently submitted the last module of the premarket application to the FDA. Freenome then plans to submit a supplement to the FDA for its next-generation test once final clinical validation data are available. Analyst Reaction William Blair writes that investors are most focused on acquisition of the exclusive rights to Freenome's current and future blood-based colorectal cancer (CRC) screening tests. The announcement comes as the company's blood CRC test did not meet expectations in the pivotal trial. Analyst Andrew Brackmann notes that shares are trading lower, representing an opportunity to build or add to positions. William Blair notes that the Freenome deal helps the company move faster in making money from these tests, reduces the threat from competitors, and eases investor concerns that blood-based CRC tests could slow down growth in its screening business. It strengthens the company's position as the top player in noninvasive CRC screening. William also expects the numbers to improve later this year and into 2026. William Blair reiterated the Outperform rating. Barclays maintained its Overweight rating but adjusted its price forecast downward from $65 to $55. Similarly, RBC Capital kept its Sector Perform rating for Exact Sciences, reducing its price forecast from $54 to $46. Finally, UBS reiterated its Neutral stance on the company, lowering its price forecast from $61 to $53. Price Action: EXAS stock is trading lower by 12.3% to $41.13 at last check Thursday. Read Next:Photo by Faces Portrait via Shutterstock Latest Ratings for EXAS Date Firm Action From To Feb 2022 Wells Fargo Maintains Equal-Weight Feb 2022 Citigroup Maintains Neutral Feb 2022 Raymond James Maintains Outperform View More Analyst Ratings for EXAS View the Latest Analyst Ratings UNLOCKED: 5 NEW TRADES EVERY WEEK. Click now to get top trade ideas daily, plus unlimited access to cutting-edge tools and strategies to gain an edge in the markets. Get the latest stock analysis from Benzinga? EXACT SCIENCES (EXAS): Free Stock Analysis Report This article Exact Sciences Dip A Chance To Buy As Freenome Deal Fortifies Future: Analyst originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
07-08-2025
- Business
- Yahoo
Exact Sciences to acquire US rights for Freenome's blood-based CRC test
Freenome has entered an exclusive licence agreement with Exact Sciences, granting the latter the rights to commercialise Freenome's blood-based colorectal cancer (CRC) screening test in the US. Exact Sciences plans to accelerate the market adoption of the CRC blood test by leveraging its commercial infrastructure. Under the agreement, Exact Sciences will pay Freenome an upfront cash payment of $75m that is payable by this November. Freenome is set to receive up to an additional $700m, contingent upon reaching specific milestones related to its CRC screening tests. These milestones include a $100m payment upon receiving first-line approval from the Food and Drug Administration (FDA) for their inaugural test and another $100m for the approval of a subsequent, next-generation test that meets or exceeds certain performance criteria, such as a minimum of 19% advanced precancerous lesions (APL) sensitivity and 83% overall CRC sensitivity. However, should the performance fall below these benchmarks, the payment would be adjusted accordingly. Furthermore, Freenome could earn $500m if its test is classified as a first-line A or B test in the US Preventive Services Taskforce (USPSTF) guidelines or if it achieves certain payer-contracted coverage requirements. Again, a decreased payment is applicable if the test is included in the USPSTF guidelines as a second-line A or B test. Freenome could be entitled to obtain royalties that vary between 0% and 10%, depending on the profitability of the test, while also adhering to standard provisions for royalty stacking. However, if specific conditions are not fulfilled, Exact Sciences reserves the right to end the agreement. Exact Sciences noted that it is committed to investing $20m annually over three years in joint research and development to further utilise the technology. Freenome retains rights to its CRC blood test when combined with other cancer screening tests. The license agreement also includes a senior convertible note purchase by Exact Sciences, amounting to $50m, with a coupon rate of 5% due in 2030. Freenome's PREEMPT CRC Study, which involved nearly 49,000 adults at average risk, demonstrated the CRC test's ability to identify 81.1% of CRC, including 63.5% at stage one, and 13.7% of APL, with a specificity of 90.4%. Freenome is also working on an 'improved version' of the test, which has shown enhanced performance in detection rates, and plans to submit a supplemental premarket approval application to the FDA once final clinical validation data are available. In a recent development, Exact Sciences expanded its collaboration with private insurer Humana to make the Cologuard Plus test available to eligible Humana Medicare Advantage members as an in-network service across the US. "Exact Sciences to acquire US rights for Freenome's blood-based CRC test" was originally created and published by Medical Device Network, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
06-08-2025
- Business
- Yahoo
Exact Sciences (NASDAQ:EXAS) Reports Strong Q2 But Stock Drops 15.2%
Diagnostic company Exact Sciences Corporation (NASDAQ:EXAS) reported Q2 CY2025 results exceeding the market's revenue expectations , with sales up 16% year on year to $811.1 million. The company's full-year revenue guidance of $3.15 billion at the midpoint came in 1.7% above analysts' estimates. Its non-GAAP profit of $0.22 per share was significantly above analysts' consensus estimates. Is now the time to buy Exact Sciences? Find out in our full research report. Exact Sciences (EXAS) Q2 CY2025 Highlights: Exact Sciences will pay $75 million in cash (plus up to $700 million in additional payments) to secure the rights to Freenome's blood-based screening tools for colorectal cancer. Exact will also pay royalties up to 10% and $20 million annually for the next three years in joint R&D costs Revenue: $811.1 million vs analyst estimates of $773.1 million (16% year-on-year growth, 4.9% beat) Adjusted EPS: $0.22 vs analyst estimates of $0.05 (significant beat) Adjusted EBITDA: $138.2 million vs analyst estimates of $108.7 million (17% margin, 27.2% beat) The company lifted its revenue guidance for the full year to $3.15 billion at the midpoint from $3.10 billion, a 1.8% increase EBITDA guidance for the full year is $465 million at the midpoint, above analyst estimates of $437.4 million Operating Margin: -0.3%, up from -3.8% in the same quarter last year Free Cash Flow Margin: 5.8%, down from 10.2% in the same quarter last year Constant Currency Revenue rose 16% year on year (12.4% in the same quarter last year) Market Capitalization: $8.93 billion 'The Exact Sciences team continues to build momentum, advancing our mission through earlier detection,' said Kevin Conroy, chairman and CEO. Company Overview With a mission to detect cancer earlier when it's more treatable, Exact Sciences (NASDAQ:EXAS) develops and markets cancer screening and diagnostic tests, including its flagship Cologuard stool-based colorectal cancer screening test. Revenue Growth A company's long-term performance is an indicator of its overall quality. Even a bad business can shine for one or two quarters, but a top-tier one grows for years. Thankfully, Exact Sciences's 21.1% annualized revenue growth over the last five years was excellent. Its growth beat the average healthcare company and shows its offerings resonate with customers. We at StockStory place the most emphasis on long-term growth, but within healthcare, a half-decade historical view may miss recent innovations or disruptive industry trends. Exact Sciences's annualized revenue growth of 13% over the last two years is below its five-year trend, but we still think the results suggest healthy demand. We can better understand the company's sales dynamics by analyzing its constant currency revenue, which excludes currency movements that are outside their control and not indicative of demand. Over the last two years, its constant currency sales averaged 13.3% year-on-year growth. Because this number aligns with its normal revenue growth, we can see that Exact Sciences has properly hedged its foreign currency exposure. This quarter, Exact Sciences reported year-on-year revenue growth of 16%, and its $811.1 million of revenue exceeded Wall Street's estimates by 4.9%. Looking ahead, sell-side analysts expect revenue to grow 11.8% over the next 12 months, similar to its two-year rate. Despite the slowdown, this projection is noteworthy and indicates the market is forecasting success for its products and services. Unless you've been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) stock benefiting from the rise of AI. Click here to access our free report one of our favorites growth stories. Operating Margin Operating margin is an important measure of profitability as it shows the portion of revenue left after accounting for all core expenses – everything from the cost of goods sold to advertising and wages. It's also useful for comparing profitability across companies with different levels of debt and tax rates because it excludes interest and taxes. Although Exact Sciences broke even this quarter from an operational perspective, it's generally struggled over a longer time period. Its expensive cost structure has contributed to an average operating margin of negative 29.8% over the last five years. Unprofitable healthcare companies require extra attention because they could get caught swimming naked when the tide goes out. It's hard to trust that the business can endure a full cycle. On the plus side, Exact Sciences's operating margin rose by 29.2 percentage points over the last five years, as its sales growth gave it operating leverage. Zooming into its more recent performance, however, we can see the company's margin has decreased by 16.6 percentage points on a two-year basis. If Exact Sciences wants to pass our bar, it must prove it can expand its profitability consistently. Exact Sciences's operating margin was negative 0.3% this quarter. Earnings Per Share Revenue trends explain a company's historical growth, but the long-term change in earnings per share (EPS) points to the profitability of that growth – for example, a company could inflate its sales through excessive spending on advertising and promotions. Although Exact Sciences's full-year earnings are still negative, it reduced its losses and improved its EPS by 33.1% annually over the last five years. The next few quarters will be critical for assessing its long-term profitability. In Q2, Exact Sciences reported adjusted EPS at $0.22, up from negative $0.06 in the same quarter last year. This print easily cleared analysts' estimates, and shareholders should be content with the results. Over the next 12 months, Wall Street is optimistic. Analysts forecast Exact Sciences's full-year EPS of negative $0.33 will flip to positive $0.73. Key Takeaways from Exact Sciences's Q2 Results Exact Sciences will pay $75 million in cash and make up to $700 million in additional payments to secure the rights to Freenome's current and future blood-based screening tools for colorectal cancer. Exact will also pay sales royalties up to 10% and $20 million annually for the next three years in joint research and development costs. So do we think Exact Sciences is an attractive buy at the current price? The latest quarter does matter, but not nearly as much as longer-term fundamentals and valuation, when deciding if the stock is a buy. We cover that in our actionable full research report which you can read here, it's free. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
21-05-2025
- Business
- Yahoo
Freenome Appoints Linh H. Le as Chief Financial Officer
Seasoned diagnostics executive brings expertise in financial strategy and operational infrastructure development across diagnostics and Medtech industries BRISBANE, Calif., May 21, 2025 /PRNewswire/ -- Freenome, a biotechnology company pioneering an early cancer detection platform, today announced the appointment of Linh H. Le as its new chief financial officer. Linh brings more than two decades of experience in leading finance and operations across diagnostics and Medtech companies, including Ambry Genetics, Medtronic and Predicine. At Freenome, Linh will oversee financial strategy and operational execution, supporting the company as it expands its commercial footprint. "Linh has a proven track record of building the financial and operational foundations required to scale and sustain innovation," said Aaron Elliott, Ph.D., chief executive officer of Freenome. "He has led large-scale transformations, improved enterprise performance, and brings a focused, results-oriented approach that will help us execute with precision and purpose. I'm thrilled to welcome him to Freenome's leadership team." Prior to joining Freenome, Linh served as CFO at Predicine, where he implemented a best-in-class revenue cycle management system and led expansion into multiple U.S. markets. He previously held the role of chief operating officer at Ambry Genetics, where he led organization-wide change that supported significant sample volume growth and operational scalability. Earlier in his career, Linh spent 14 years at Medtronic Diabetes, where he served as CFO for the intensive insulin management business unit with oversight across North America, EMEA, and Asia-Pacific. Linh began his career in assurance practice at KPMG and management advisory practice at PwC before taking on leadership roles at The Walt Disney Company and Fox. He is a Certified Public Accountant, holds a Bachelor of Science in Business Administration and Accounting from California State University, Northridge, and completed executive coursework at the Wharton School of Business. He was named CFO of the Year by the Los Angeles Times in 2022. About FreenomeFreenome is breaking barriers to early cancer detection with a suite of blood tests built on its multiomics platform. The company recognizes that no single technology can identify every cancer due to the disease's inherent heterogeneity. Freenome's multimodal approach combines molecular biology and assays with computational biology, machine learning and multiple data types to tune into cancer's subtlest cues, even at the earliest stages of the disease. With the convenience of a standard blood draw, Freenome aims to empower everyone to access recommended cancer screenings. The company is partnering with healthcare organizations and population health decision-makers to integrate its technology and software platform, making cancer detection easier and more accessible. Freenome is headquartered in Brisbane, California. Find out more at and visit us on LinkedIn. View original content to download multimedia: SOURCE Freenome Holdings, Inc. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Associated Press
21-05-2025
- Business
- Associated Press
Freenome Appoints Linh H. Le as Chief Financial Officer
Seasoned diagnostics executive brings expertise in financial strategy and operational infrastructure development across diagnostics and Medtech industries BRISBANE, Calif., May 21, 2025 /PRNewswire/ -- Freenome, a biotechnology company pioneering an early cancer detection platform, today announced the appointment of Linh H. Le as its new chief financial officer. Linh brings more than two decades of experience in leading finance and operations across diagnostics and Medtech companies, including Ambry Genetics, Medtronic and Predicine. At Freenome, Linh will oversee financial strategy and operational execution, supporting the company as it expands its commercial footprint. 'Linh has a proven track record of building the financial and operational foundations required to scale and sustain innovation,' said Aaron Elliott, Ph.D., chief executive officer of Freenome. 'He has led large-scale transformations, improved enterprise performance, and brings a focused, results-oriented approach that will help us execute with precision and purpose. I'm thrilled to welcome him to Freenome's leadership team.' Prior to joining Freenome, Linh served as CFO at Predicine, where he implemented a best-in-class revenue cycle management system and led expansion into multiple U.S. markets. He previously held the role of chief operating officer at Ambry Genetics, where he led organization-wide change that supported significant sample volume growth and operational scalability. Earlier in his career, Linh spent 14 years at Medtronic Diabetes, where he served as CFO for the intensive insulin management business unit with oversight across North America, EMEA, and Asia-Pacific. Linh began his career in assurance practice at KPMG and management advisory practice at PwC before taking on leadership roles at The Walt Disney Company and Fox. He is a Certified Public Accountant, holds a Bachelor of Science in Business Administration and Accounting from California State University, Northridge, and completed executive coursework at the Wharton School of Business. He was named CFO of the Year by the Los Angeles Times in 2022. About Freenome Freenome is breaking barriers to early cancer detection with a suite of blood tests built on its multiomics platform. The company recognizes that no single technology can identify every cancer due to the disease's inherent heterogeneity. Freenome's multimodal approach combines molecular biology and assays with computational biology, machine learning and multiple data types to tune into cancer's subtlest cues, even at the earliest stages of the disease. With the convenience of a standard blood draw, Freenome aims to empower everyone to access recommended cancer screenings. The company is partnering with healthcare organizations and population health decision-makers to integrate its technology and software platform, making cancer detection easier and more accessible. Freenome is headquartered in Brisbane, California. Find out more at and visit us on LinkedIn. View original content to download multimedia: SOURCE Freenome Holdings, Inc.
