Exact Sciences Corp at Goldman Sachs Global Healthcare Conference Transcript

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

Question: Matthew Sykes - Goldman Sachs Group, Inc. - Analyst : Great. Thank you, Kevin. You've answered all my questions. So (multiple speakers) Thanks very much for that, for those comments. I think it's super helpful. I want to start with Cologuard, and I want to start with a high-level question. It's maintained, very strong growth continues into this year. Could you talk about the runway, the penetration rate that Cologuard has. Obviously you'll have Cologuard Plus coming on. But just if you think about the Cologuard franchise in general and you think about the penetration and you think about potential competition coming in, like what is that runway for Cologuard you see?

Question: Matthew Sykes - Goldman Sachs Group, Inc. - Analyst : Got it. Maybe I want to touch on something, Kevin, you said a little bit earlier about the infrastructure that you guys have developed, particularly on the commercial side. And I think there's a lot of focus on new technology gets introduced and maybe too less focus on the fact that it costs a lot of money to develop the infrastructure to sell it. And so as you think about what you've developed for Cologuard, particularly facing what I would consider one of the most difficult channel to face, which is the PCP market and what you've developed there. How are you thinking about adding additional tests in? And I'm thinking about the blood screening test potentially and others that gives you an advantage longer term versus some of the competition.

Question: Matthew Sykes - Goldman Sachs Group, Inc. - Analyst : Got it. I think that the commercial reserves you built for PCP is highly relevant to the potential blood screening tests that you guys are developing. But on the MRD side, could you maybe talk a little bit about how your commercial infrastructure could benefit the MRD? And maybe give the audience, an update on where you are on MRD in terms of timeline.

Question: Matthew Sykes - Goldman Sachs Group, Inc. - Analyst : Got it. And Aaron, I want to go back to you for a second on Cologuard. You mentioned two of the opportunities in rescreen in Care Gap. First on rescreens, are you expecting to reach 50% of your business long term. I think it's somewhere around 20% today. Can you talk about the opportunity you're seeing there and the path towards that 50% in rescreens?

Question: Matthew Sykes - Goldman Sachs Group, Inc. - Analyst : Got it. And they just don't care about Care Gap. Maybe explain to the audience kind of what the Care Gap is and what the opportunity is and how you're working with payers and systems in order to facilitate that. Kevin, if you want to take it.

Question: Matthew Sykes - Goldman Sachs Group, Inc. - Analyst : And Aaron, maybe you can contextualize the upside in the Care Gap and the rescreens either in the context of 24 longer term?

Question: Matthew Sykes - Goldman Sachs Group, Inc. - Analyst : Got it. And then recently, you've reached profitability, you actually pulled forward that target pretty meaningfully. Could you talk about some of the operating levers that are in the business, I think particularly the G&A side and what that can mean to profitability in that path and margins going forward?

Question: Matthew Sykes - Goldman Sachs Group, Inc. - Analyst : Got it. Maybe just shifting to the precision oncology business a little bit, switch focus on Cologuard. You had mentioned the Oncotype DX and the dominant position you have there. I did want to ask about the international opportunity within Precision Oncology because I know it's not a large part of the business, but the growth is there. Maybe just talk about how you think about the international opportunity for Exact Sciences.

Question: Matthew Sykes - Goldman Sachs Group, Inc. - Analyst : Got it. If we turn to your pipeline for a little bit, and one of the things I wanted to discuss was the blood test for CRC screening. You've mentioned that you're guiding to data release in October. How do you see the blood test fitting into the overall Exact Sciences portfolio? What do you see as the role of blood in CRC screening?

Question: Matthew Sykes - Goldman Sachs Group, Inc. - Analyst : Got it. And maybe just going back to Cologuard Plus for a minute. Maybe just talk about -- obviously we're looking at post-approval, but in terms of the rollout and then talk about maybe Aaron, your side, the COGS differential between current Cologuard and Cologuard Plus and what that could look like financially for Exact as that -- you phase that product in?

Question: Matthew Sykes - Goldman Sachs Group, Inc. - Analyst : Got it. If we just talk about for Cologuard compliance adherence and trends that you've seen, you've been in the high 60% in terms of adherence. As rescreens start becoming a bigger and bigger part, one would assume that adherence for rescreening is just better than first time users. So maybe talk about what your expectations are for adherence for Cologuard and the steps you're taking to improve that?

Question: Matthew Sykes - Goldman Sachs Group, Inc. - Analyst : Got it. I do want to go back to one of the things you've talked about in terms of investments. You've made some investments into automation in the first quarter, it kind of hit margins a little bit, which is expected. But maybe just talk about the level of investment you're putting into automation and what the eventual output and efficiency will be from those investments?

Question: Matthew Sykes - Goldman Sachs Group, Inc. - Analyst : Got it. Maybe just in the time we have left, maybe, Aaron, you could talk a little bit about capital deployment, how you're thinking about that. There's been a lot of organic investment. You guys have talked a lot about the pipeline and a lot of the projects you have going on. How are you thinking about capital deployment and balance sheet just in general? without the prior written consent of Thomson Reuters. 'Thomson Reuters' and the Thomson Reuters logo are registered trademarks of Thomson Reuters and its affiliated companies. JUNE 11, 2024 / 7:20PM, EXAS.OQ - Exact Sciences Corp at Goldman Sachs Global Healthcare Conference

Question: Matthew Sykes - Goldman Sachs Group, Inc. - Analyst : Got it. And just some closing remarks from you, Kevin. Maybe what do you feel is underappreciated about the Exact story currently?

Question: Matthew Sykes - Goldman Sachs Group, Inc. - Analyst : Perfect. Kevin, Aaron, thank you so much for joining us. We appreciate it.