Exact Sciences Corp at Wells Fargo Healthcare Conference Transcript

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

Question: Brandon Couillard - Wells Fargo - Analyst : Thank you. So we both started new roles fairly recently. You've been in the CFO seat for about four months now, maybe just start with what surprised you maybe both good and bad in these last in your short a few months on the job and where are you spending the majority of your time right now?

Question: Brandon Couillard - Wells Fargo - Analyst : The pipeline sorry, has definitely been a long time coming and a lot to look forward to. I do want to get to that in a minute. First of all, start with Cologuard. So it's now 10 years old, hard to believe it's been 10 years --

Question: Brandon Couillard - Wells Fargo - Analyst : It's billion dollar franchising that like it's now double-digits. Can it still grow double-digits what are the biggest near and midterm drivers that investors should focus on. If you had to stack rank them be at 45, 49 rescreening EMRs, what are the biggest drivers of that durable double-digit growth?

Question: Brandon Couillard - Wells Fargo - Analyst : Maybe just sticking with the Care Gap program, you haven't really put any revenue sizes around that. You have said that the first half was revenue was more than all of 23 combined, you do have electronic ordering with 300 health care system today. How many of them are participating in the Care Gap program? And is it a flawed logic to actually think about that perhaps creating a headwind next year, right? Because if you think about these patients, the lowest hanging fruit and then the good for three years and so you have to refill that bucket plus some more. So can it actually be sustainable growth going forward as opposed to maybe episodic?

Question: Brandon Couillard - Wells Fargo - Analyst : Assuming 100% capture of the 3 million to 4 million on a three year cycle.

Question: Brandon Couillard - Wells Fargo - Analyst : Okay.

Question: Brandon Couillard - Wells Fargo - Analyst : Okay interesting. Last question on this. How much of this business is it's just driven by inbound as opposed to a dedicated like commercial effort where you're pitching this program to systems and payers, curious what that looks like.

Question: Brandon Couillard - Wells Fargo - Analyst : It was Cologuard. What's your latest view on timing of FDA approval for Cologuard plus could come before the end of the year and then post approval to help us think through how you expect to transition from 1.0 to Cologuard plus and the time line of what that looks like at least initially you'll have Medicare? I think that's about 35% of the Cologuard volume or at least screening revenue, but just help us think through the steps of how that you roll that out once it is at the [airport]?

Question: Brandon Couillard - Wells Fargo - Analyst : Okay. Will you wait for that pricing I guess, to be clarified before you start shipping Cologuard plus kits to Medicare patients about the way.

Question: Brandon Couillard - Wells Fargo - Analyst : The we'll touch on the back on the rescreening population on compliance rates. Are there any patterns that you've seen that would suggest the different age groups are more or less likely to adhere to rescreens? Understanding 45.9 is relatively young in terms of being a large part of that pool, but where does that capture rate today? And then where can you take it from your higher overtime and whatever drivers of that?

Question: Brandon Couillard - Wells Fargo - Analyst : Earlier this year, you made a number of your commercial investments, expanded the sales force because are you talking about the size of that investment? Why now and how those reps are maturing as part value, any changes to the commercial strategy since the [Everett of it left]?

Question: Brandon Couillard - Wells Fargo - Analyst : I want to touch on the revenue outlook for the back half. So the guidance high screening growth accelerate to like 20% in the second half, up from, call it 10 roughly in the first half. You usually guy the fourth quarter to be flat sequentially due to seasonality, right? And most years that typically outperform. So the upside. But the current guide actually implies, I don't know, a double-digit sequential step-up. Could you just unpack the key drivers of that visibility and just the confidence level in hitting that, let's say, more optimistic I looked in you typically give for third and fourth quarter?

Question: Brandon Couillard - Wells Fargo - Analyst : Sorry, last question on Care Gap that when we get to a fun stuff. Are the payers and health systems, are they pre buying those kits? Are you betting on some compliance number of the kits that you ship out actually come back and that translate to the revenue that you're booking and there's a great deal of variability to that number because it's a new program.

Question: Brandon Couillard - Wells Fargo - Analyst : Yeah, I got. Shifting gears to blood-based CRC screening. Okay, could you just give us an update on your expectation for data release on the initial 3,900 samples from Lucy for your blood test and sort of timing or conference circuit? And how should investors be assessing that data? What would you characterize as good data or success relative to comps that we've seen this year?

Question: Brandon Couillard - Wells Fargo - Analyst : To pin you down, but coming weeks might suggest sometime by the end of October rather than later than that, which you talked about, Kevin talked about October. It's still valid there still holds.

Question: Brandon Couillard - Wells Fargo - Analyst : Real quick, when do you expect to publish data on the entire 20,000 BLUE-C samples. We still expect that by the end of the year and to expect some level of degradation relative to case controls the right term for it, but this initial 3,000 dataset?

Question: Brandon Couillard - Wells Fargo - Analyst : Just about should we expect some degradation or go to a population, you know, size cohort? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 04, 2024 / 7:45PM, EXAS.OQ - Exact Sciences Corp at Wells Fargo Healthcare Conference

Question: Brandon Couillard - Wells Fargo - Analyst : Switching gears real quick, MRD, what attributes are you designing your MRD test around? You're also planning to release data. Just sensitivity is critical here as it is for screening. And will you add reps to support that launch in '25? Or will you fold it into the existing oncology team?

Question: Brandon Couillard - Wells Fargo - Analyst : Just in the one minute we have left. Two questions is Exact done with talking M&A right now. Are there any areas that you'd like to fill. And number two, just talk about the key drivers of taking gross margins, which are already pretty good low 70s today toward the 80% plus target over time.

Question: Brandon Couillard - Wells Fargo - Analyst : So proportionately, we're out of time. So I have to leave it there and thanks so much for being here. Bye, have a great day.