Exact Sciences Corp at Citi Global Healthcare Conference Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Patrick Donnelly - Citigroup Global Markets Inc - Analyst : Maybe we can start just with the most recent news. Obviously, got the pricing increase on the CMS side. Maybe just talk about you had the flat initial payment. The final payment came through nicely above in terms of that increase. So that 16% increase higher -- maybe just talk about what volume that hits? I know there's the Medicaid fee-for-service, Medicaid Advantage. Maybe just talk about what that means for you guys and where that came in relative to expectations.

Question: Patrick Donnelly - Citigroup Global Markets Inc - Analyst : Yes. Okay. And then, Aaron, maybe just on the financial side, right? As Kevin said, there, 20% Medicare fee-for-service. That will flip over day 1, Medicare Advantage. I think some chunk of that is tied to the pricing day 1, and then it will move over but 16% higher price, the COGS are lower as well. Maybe just talk about what that EBITDA impact could look like for you guys and the profitability of Cologuard Plus versus the old version.

Question: Patrick Donnelly - Citigroup Global Markets Inc - Analyst : And then yes, maybe we can kind of turn our attention to the latest quarter, the guidance, what it all means for '25. I know obviously, you guys came up a little short in terms of the guidance of where you want it to be coming out of 3Q. A big piece of that was just that sales and marketing efficiency, productivity, if you want to call it. Yes, maybe just talk through what happened and where we are today, how you guys are kind of righting the ship on that front and where we stand?

Question: Patrick Donnelly - Citigroup Global Markets Inc - Analyst : Yes. And I guess when you guys make some of those changes that you talked about, how long does it take to kind of impact things. I know you guys track things day by day, minute by minute probably. But how do you see that? I know you've talked about -- you've added, I think, 1,000 new providers, one of the more recent weeks. Maybe just talk about how quickly some of those changes can impact?

Question: Patrick Donnelly - Citigroup Global Markets Inc - Analyst : Yes. And I know for 4Q, you talked a little bit about there's that usual seasonality. We're not seeing it this year. Is that -- is that just because of some of that sales and marketing stuff, maybe just talk about the, I guess, the lack of seasonality we're seeing this year and the right way to think about that going forward?

Question: Patrick Donnelly - Citigroup Global Markets Inc - Analyst : And I know another thing we talked a lot about during the quarter was the care gap. It was kind of viewed as this 4Q step-up. You guys have said a few times, it's bigger than you think. It's underappreciated -- maybe just talk through maybe first, what care gap is and then what that opportunity looks like as we kind of step forward.

Question: Patrick Donnelly - Citigroup Global Markets Inc - Analyst : Sure.

Question: Patrick Donnelly - Citigroup Global Markets Inc - Analyst : Probably like two years.

Question: Patrick Donnelly - Citigroup Global Markets Inc - Analyst : Yes. Maybe that's a good time, Aaron to talk a little bit about 2025. I know you guys have talked about a reacceleration, double-digit growth, care gap, rescreen, obviously, big pieces. I guess when you think about the bridge or the drivers into next year, obviously you talked a little bit about care gap there. What are the big opportunities and just the confidence in that reacceleration into next year?

Question: Patrick Donnelly - Citigroup Global Markets Inc - Analyst : No, that's helpful. And then I guess, yes, maybe in terms of the EBITDA piece, obviously, a big focus as well. You guys have some long-term guide out there. Maybe just talk about the execution on the EBITDA front so far. And then, again, the right way to think about the expectations going forward as we talked about Cologuard Plus should be a nice boost on that front as well.

Question: Patrick Donnelly - Citigroup Global Markets Inc - Analyst : Yes. Okay. That's helpful. And then maybe just kind of circling back on the rescreen piece, big opportunity getting bigger every year. I know you guys have refined the strategy of capturing those rescreens, whether it was text or doctor reminders, I know the folks don't come back three years of one day and reorder. Where are we in terms of that recapture rate? And again, what's the right way to think about when these on average, people are indeed reordering to your point, people tend to slip a little bit off of the time line for pretty much everything on the health side. But where are you guys these days? And what's the right way to think about that going forward? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. DECEMBER 03, 2024 / 1:45PM, EXAS.OQ - Exact Sciences Corp at Citi Global Healthcare Conference

Question: Patrick Donnelly - Citigroup Global Markets Inc - Analyst : Yes. No, it's nice, as Aaron said, nice predictable revenue as well and profitable. And then the care gaps...

Question: Patrick Donnelly - Citigroup Global Markets Inc - Analyst : And how realistic is that? I guess, what would be the hurdles to getting that move from needing a script or whatever it may be to just being able to at least on a reorder basis, just have it show up on your front porch three years and a day? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. DECEMBER 03, 2024 / 1:45PM, EXAS.OQ - Exact Sciences Corp at Citi Global Healthcare Conference

Question: Patrick Donnelly - Citigroup Global Markets Inc - Analyst : Yes, fair enough.

Question: Patrick Donnelly - Citigroup Global Markets Inc - Analyst : Yes. And then the care gap piece, helpful nugget there in terms of being over 200,000 this year. I think you mentioned it has a path to $1 million had doubled this year. I guess what's a realistic time line to think about in terms of getting to that number? And what's -- how do you guys frame up one million tests as an opportunity on the care gas side?

Question: Patrick Donnelly - Citigroup Global Markets Inc - Analyst : Yes. I wanted to spend some time on the pipeline, I know we've chatted , maybe it's a little underappreciated at times. It's starting to get a little more spotlight these days. But maybe we could start with MRD and then we'll move to the blood side. But MRD, I know the time line has shifted around a little bit there. Maybe just talk through when we should expect to see some data out of you guys, and then you have maybe some that you've already seen? And what the right expectation is on the MRD side? Obviously a big market, you have some large players out there. How do you think about your approach and when we should be thinking about that catalyst out there?

Question: Patrick Donnelly - Citigroup Global Markets Inc - Analyst : Yes. And maybe on the MRD side, since it's maybe coming the soonest, how do you think about both the commercial side, is there a build-out necessary there? And then again, there's one very large player in there. How do you think the market just develops as we look forward a few years?

Question: Patrick Donnelly - Citigroup Global Markets Inc - Analyst : Yes. And maybe in the last minute, I know there's been times over the last couple of years, you need 30 minutes to talk about the blood market. But maybe just quickly on the blood side for colorectal. How are you thinking about the pricing? I know you guys take a different approach maybe some others that have kind of hinted at what their price could be on a blood-based test? What's your guys' view of how that market develops on the blood side and what role it could play?