Exact Sciences to Buy Thrive Earlier Detection, Stock Rises


Oct. 28 2020, Updated 9:29 a.m. ET

On Oct. 27, Exact Sciences stock surged more than 23 percent after it agreed to acquire privately-held cancer-screening firm Thrive Earlier Detection. The deal could be valued up to $215 billion. Exact Sciences also announced its solid third-quarter earnings results on Oct. 27.

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What is Exact Sciences’ stock news?

On Oct. 27, Exact Sciences posted its third-quarter earnings results. In the third quarter, the company reported an adjusted EPS of -$0.36 compared to -$0.31 in the third quarter of 2019. The adjusted EPS beat analysts’ average estimate of -$0.5. Exact Sciences generated sales of $408.4 million in the third quarter, which was 86.6 percent more than the third quarter of 2019. The company beat analysts’ average sales estimate of $337.4 million.

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Exact Sciences to buy Thrive Earlier Detection

Exact Sciences has agreed to buy cancer-screening provider Thrive Earlier Detection in a cash-and-stock deal for $2.15 billion. The deal will likely close in the first quarter of 2021. Under the terms of the deal, Thrive will get $1.7 billion upfront—35 percent in cash and 65 percent in Exact Sciences common shares. Also, about $450 million will be payable to Thrive after it completes certain milestones.  

According to a Reuters report, “Exact Sciences said it expects to expand its cancer detection portfolio with Thrive’s lead early-stage screening test, CancerSEEK, which successfully detected 10 different types of cancer in a 10,000-patient study in April.”

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What is Thrive’s CancerSEEK?

CancerSEEK is a blood test that is designed to detect various types of cancer, possibly at the earliest stages, even before noticeable symptoms occur. Right now, CancerSEEK is being developed. The test isn't available to patients yet.

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What is EXAS’s stock price today?

Exact Sciences or EXAS stock was down about 1.5 percent at $129.20 in pre-market trading as of 5:52 a.m. ET on Wednesday, Oct. 28. The stock rose 23 percent on Oct. 27 and closed at $131.12 with a market capitalization of $19.7 billion. EXAS stock has risen by 31.6 percent in the last five days and 56.1 percent in the last year.

EXAS stock is trading 7.6 percent below its 52-week high of $141.90 and 272 percent above its 52-week low of $35.25. Year-to-date, the stock had risen by 41.8 percent as of Oct. 27.

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What is Exact Sciences’ stock forecast?

Currently, analysts' stock price forecast for Exact Sciences is $118.67, which suggests a 9.5 percent downside. The highest target price of $140 implies a 6.8 percent upside, while the lowest target of $107 suggests an 18.4 percent downside. Among the 13 Wall Street analysts tracking Exact Sciences, eight recommend a buy, five recommend a hold, and none recommend a sell. 

It could be the right time to buy Exact Sciences stock based on the company's strong growth outlook. The acquisition deal with Thrive Earlier Detection could help improve the development of Exact Sciences’ multi-cancer screening offering. The deal will likely expand the company’s total addressable market by over $25 billion.


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