Exact Sciences (EXAS) 10-Q 31 Jul 15 2015 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2015	Jul. 29, 2015
Document and Entity Information
Entity Registrant Name	EXACT SCIENCES CORP
Entity Central Index Key	1,124,140
Document Type	10-Q
Document Period End Date	Jun. 30, 2015
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		96,087,664
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	Q2

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Current Assets:
Cash and cash equivalents	$ 33,765	$ 58,131
Marketable securities	177,053	224,625
Accounts receivable, net	2,151	1,376
Inventory, net	6,275	4,017
Prepaid expenses and other current assets	4,019	3,528
Total current assets	223,263	291,677
Property and Equipment, at cost:
Laboratory equipment	11,279	10,381
Assets under construction	7,664	1,552
Computer equipment and computer software	10,807	7,577
Leasehold improvements	6,446	5,937
Furniture and fixtures	933	939
Property and Equipment, gross	37,129	26,386
Less-Accumulated depreciation	(9,817)	(6,439)
Net property and equipment	27,312	19,947
Other long-term assets	2,442	1,200
Total assets	253,017	312,824
Current Liabilities:
Accounts payable	1,345	2,647
Accrued liabilities	16,306	13,960
Debt and capital lease obligation, current portion	345	360
Other short-term liabilities	734	554
Total current liabilities	18,730	17,521
Long-term debt	3,488	1,000
Long-term accrued interest		106
Other long-term liabilities	4,620	3,599
Lease incentive obligation, less current portion	1,338	1,614
Total liabilities	$ 28,176	$ 23,840
Commitments and contingencies
Stockholders' Equity:
Preferred stock, $0.01 par value Authorized—5,000,000 shares Issued and outstanding—no shares at June 30, 2015 and December 31, 2014
Common stock, $0.01 par value Authorized—200,000,000 shares Issued and outstanding—89,061,044 and 88,626,042 shares at June 30, 2015 and December 31, 2014	$ 891	$ 887
Additional paid-in capital	719,635	709,019
Accumulated other comprehensive income (loss)	(11)	(115)
Accumulated deficit	(495,674)	(420,807)
Total stockholders' equity	224,841	288,984
Total liabilities and stockholders’ equity	$ 253,017	$ 312,824

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares	Jun. 30, 2015	Dec. 31, 2014
Consolidated Balance Sheets
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, Authorized shares	5,000,000	5,000,000
Preferred stock, Issued shares	0	0
Preferred stock, outstanding shares	0	0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, Authorized shares	200,000,000	200,000,000
Common stock, Issued shares	89,061,044	88,626,042
Common stock, outstanding shares	89,061,044	88,626,042

Consolidated Statements of Oper

Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Net sales
Laboratory service revenue	$ 8,119		$ 12,385
License fees				$ 294
Total revenue	8,119		12,385	294
Cost of sales	5,094		9,306
Gross margin	3,025		3,079	294
Operating expenses:
Research and development	8,115	$ 7,174	14,686	14,604
General and administrative	13,683	6,230	26,654	10,816
Sales and marketing	20,593	6,166	37,117	10,622
Total operating expenses	42,391	19,570	78,457	36,042
Loss from operations	(39,366)	(19,570)	(75,378)	(35,748)
Other income (expense)
Investment income	193	146	415	232
Interest income (expense)	107	(13)	96	(28)
Total other income	300	133	511	204
Net loss	$ (39,066)	$ (19,437)	$ (74,867)	$ (35,544)
Net loss per share-basic and diluted (in dollars per share)	$ (0.44)	$ (0.24)	$ (0.84)	$ (0.46)
Weighted average common shares outstanding-basic and diluted (in shares)	88,919	82,048	88,791	76,548

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Consolidated Statements of Comprehensive Loss
Net loss	$ (39,066)	$ (19,437)	$ (74,867)	$ (35,544)
Other comprehensive loss, net of tax:
Unrealized (loss) gain on available-for-sale investments	(59)	(44)	136	(36)
Foreign currency translation loss	(22)		(32)
Comprehensive loss	$ (39,147)	$ (19,481)	$ (74,763)	$ (35,580)

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Cash flows from operating activities:
Net loss	$ (74,867)	$ (35,544)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization of fixed assets	3,377	1,344
Stock-based compensation	8,168	4,478
Amortization of deferred license fees		(294)
Amortization of other long-term liabilities	(241)
Forgiveness of long-term debt	(1,000)
Amortization of premium on short-term investments	702	370
Changes in assets and liabilities:
Prepaid expenses and other current assets	(291)	(1,788)
Accounts receivable	(775)
Inventory, net	(2,258)
Accounts payable	(1,302)	(404)
Accrued liabilities	3,181	3,210
Lease incentive obligation	(276)	(270)
Accrued interest	(106)	11
Net cash used in operating activities	(65,688)	(28,887)
Cash flows from investing activities:
Purchases of marketable securities	(19,318)	(138,855)
Maturities of marketable securities	66,324	44,768
Purchases of property and equipment	(10,742)	(7,196)
Net cash provided by (used in) investing activities	36,264	(101,283)
Cash flows from financing activities:
Proceeds from exercise of common stock options	859	193
Proceeds from sale of common stock, net of issuance costs		137,670
Payments on capital lease obligations	(183)	(173)
Proceeds from mortgage payable	3,656
Proceeds in connection with the Company's employee stock purchase plan	758	337
Net cash provided by financing activities	5,090	138,027
Effects of exchange rate on cash and cash equivalents	(32)
Net increase (decrease) in cash and cash equivalents	(24,366)	7,857
Cash and cash equivalents, beginning of period	58,131	12,851
Cash and cash equivalents, end of period	33,765	20,708
Supplemental disclosure of non-cash investing and financing activities:
Unrealized gain (loss) on available-for-sale investments	136	36
Issuance of 21,826 and 32,666 shares of common stock to fund the Company’s 401(k) matching contribution for 2014 and 2013, respectively	$ 835	$ 456

Consolidated Statements of Cas7

Consolidated Statements of Cash Flows (Parenthetical) - shares	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Consolidated Statements of Cash Flows
Issuance of shares of common stock to fund the Company's 401(k) matching contribution	21,826	32,669

ORGANIZATION AND BASIS OF PRESE

ORGANIZATION AND BASIS OF PRESENTATION	6 Months Ended
	Jun. 30, 2015
ORGANIZATION
ORGANIZATION AND BASIS OF PRESENTATION	(1) ORGANIZATION AND BASIS OF PRESENTATION Organization Exact Sciences Corporation (together with its subsidiaries, “Exact”, “we”, “us” or the “Company”) was incorporated in February 1995. Exact is a molecular diagnostics company currently focused on the early detection and prevention of some of the deadliest forms of cancer. The Company has developed an accurate, non-invasive, patient-friendly screening test for the early detection of colorectal cancer and pre-cancer, and is currently working on the development of tests for lung cancer, pancreatic cancer and esophageal cancer. Basis of Presentation The accompanying condensed consolidated financial statements, which include the accounts of Exact Sciences Corporation and those of its wholly-owned subsidiaries, Exact Sciences Laboratories, LLC, Exact Sciences Finance Corporation, Exact Sciences Europe LTD, and variable interest entities are unaudited and have been prepared on a basis substantially consistent with the Company’s audited financial statements and notes as of and for the year ended December 31, 2014 included in the Company’s Annual Report on Form 10-K (the “2014 Form 10-K”). These condensed financial statements are prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”) and follow the requirements of the Securities and Exchange Commission (“SEC”) for interim reporting. In the opinion of management, all adjustments (consisting only of adjustments of a normal and recurring nature) considered necessary for a fair presentation of the results of operations have been included. The results of the Company’s operations for any interim period are not necessarily indicative of the results of the Company’s operations for any other interim period or for a full fiscal year. The statements should be read in conjunction with the audited financial statements and related notes included in the 2014 Form 10-K. Management has evaluated subsequent events for disclosure or recognition in the accompanying financial statements up to the filing of this report.

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	6 Months Ended
	Jun. 30, 2015
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	(2) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Principles of Consolidation The accompanying consolidated financial statements include the accounts of the Company’s wholly-owned subsidiaries, Exact Sciences Laboratories, LLC, Exact Sciences Finance Corporation, Exact Sciences Europe LTD, and variable interest entities. All significant intercompany transactions and balances have been eliminated in consolidation. References to “Exact”, “we”, “us”, “our”, or the “Company” refer to Exact Sciences Corporation and its wholly owned subsidiaries. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Cash and Cash Equivalents The Company considers cash on hand, demand deposits in bank, money market funds, and all highly liquid investments with an original maturity of 90 days or less to be cash and cash equivalents. The Company had no restricted cash at June 30, 2015 and December 31, 2014 . Marketable Securities Management determines the appropriate classification of debt securities at the time of purchase and re-evaluates such designation as of each balance sheet date. Debt securities carried at amortized cost are classified as held-to-maturity when the Company has the positive intent and ability to hold the securities to maturity. Marketable equity securities and debt securities not classified as held-to-maturity are classified as available-for-sale. Available-for-sale securities are carried at fair value, with the unrealized gains and losses, net of tax, reported in other comprehensive loss. The amortized cost of debt securities in this category is adjusted for amortization of premiums and accretion of discounts to maturity computed under the straight-line method, which approximates the effective interest method. Such amortization is included in investment income. Realized gains and losses and declines in value judged to be other-than-temporary on available-for-sale securities are included in investment income. The cost of securities sold is based on the specific identification method. Interest and dividends on securities classified as available-for-sale are included in investment income. At June 30, 2015 and December 31, 2014 , the Company’s investments were comprised of fixed income investments and all were deemed available-for-sale. The objectives of the Company’s investment strategy are to provide liquidity and safety of principal while striving to achieve the highest rate of return consistent with these two objectives. The Company’s investment policy limits investments to certain types of instruments issued by institutions with investment grade credit ratings and places restrictions on maturities and concentration by type and issuer. Investments in which the Company has the ability and intent, if necessary, to liquidate in order to support its current operations (including those with a contractual term greater than one year from the date of purchase) are classified as current. All of the Company’s investments are considered current. There were no realized losses for the six months ended June 30 , 2015 and 2014 . Realized gains were $4.8 thousand and $7.6 thousand for the six months ended June 30 , 2015 and 2014, respectively. We periodically review our investments in unrealized loss positions for other-than-temporary impairments. This evaluation includes, but is not limited to, significant quantitative and qualitative assessments and estimates regarding credit ratings, collateralized support, the length of time and significance of a security’s loss position, our intent not to sell the security, and whether it is more likely than not that we will have to sell the security before recovery of its cost basis. For the six months ended June 30 , 2015, no investments were identified with other-than-temporary declines in value. Available-for-sale securities at June 30, 2015 consisted of the following: June 30, 2015 Gains in Accumulated Losses in Accumulated Other Comprehensive Other Comprehensive Estimated Fair (In thousands) Amortized Cost Income Income Value Corporate bonds $ $ $ $ U.S. government agency securities — Asset backed securities Commercial paper — — Total available-for-sale securities $ $ $ $ Available-for-sale securities at December 31, 2014 consisted of the following: December 31, 2014 Gains in Accumulated Losses in Accumulated Other Comprehensive Other Comprehensive Estimated Fair (In thousands) Amortized Cost Income Income Value Corporate bonds $ $ $ $ U.S. government agency securities Certificates of deposit Commercial paper — — Total available-for-sale securities $ $ $ $ Changes in Accumulated Other Comprehensive Income (Loss) The amounts recognized in accumulated other comprehensive income (loss) (AOCI) for the six months ended June 30, 2015 were as follows (in thousands): Accumulated Cumulative Unrealized Other Translation Gain (Loss) Comprehensive Adjustment on Securities Income (Loss) Balance at December 31, 2014 $ — $ $ Other comprehensive (loss) income before reclassifications Amounts reclassified from accumulated other comprehensive loss — Net current period change in accumulated other comprehensive income (loss) Balance at June 30, 2015 $ $ $ The amounts recognized in AOCI for the six months ended June 30, 2014 were as follows (in thousands): Accumulated Cumulative Unrealized Other Translation Gain (Loss) Comprehensive Adjustment on Securities Income (Loss) Balance at December 31, 2013 $ — $ $ Other comprehensive (loss) income before reclassifications — Amounts reclassified from accumulated other comprehensive loss — Net current period change in accumulated other comprehensive income (loss) — Balance at June 30, 2014 $ — $ $ Amounts reclassified from accumulated other comprehensive income (loss) for the six months ended June 30, 2015 were as follows (in thousands): Affected Line Item in the Six Months Ended June 30, Details about AOCI Components Statement of Operations 2015 2014 Change in value of available-for-sale investments Sales and maturities of available-for-sale investments Investment income $ $ Total reclassifications $ $ Property and Equipment Property and equipment are stated at cost and depreciated using the straight-line method over the assets’ estimated useful lives. Maintenance and repairs are expensed when incurred; additions and improvements are capitalized. The estimated useful lives of fixed assets are as follows: Estimated Asset Classification Useful Life Laboratory equipment 3 - 5 years Computer equipment and computer software 3 years Leasehold improvements Lesser of the remaining lease term or useful life Furniture and fixtures 3 years At June 30, 2015 , the Company had $ 7.7 million of assets under construction which consisted of $4.8 million related to a new building purchase, $1.5 million of capitalized costs related to software projects, $0.8 million of costs related to machinery and equipment, and $0.6 million of costs related to leasehold improvement and building projects. Depreciation will begin on these assets once they are placed into service. The Company expect s to incur $2.4 million in costs to complete the building improvements of which $1. 4 million will be financed. The Company expect s to incur minimal costs to complete the leasehold improvements, machinery and equipment, and the software projects, and these projects are expected to be completed in 2015. Software Capitalization Policy Software development costs related to internal use software are incurred in three stages of development: the preliminary project stage, the application development stage, and the post-implementation stage. Costs incurred during the preliminary project and post-implementation stages are expensed as incurred. Costs in the application development stage that meet the criteria for capitalization are capitalized and amortized using the straight-line basis over the estimated economic useful life of the software. Net Loss Per Share Basic net loss per common share was determined by dividing net loss applicable to common stockholders by the weighted average common shares outstanding during the period. Basic and diluted net loss per share are the same because all outstanding common stock equivalents have been excluded, as they are anti-dilutive due to the Company’s losses. The following potentially issuable common shares were not included in the computation of diluted net loss per share because they would have an anti-dilutive effect due to net losses for each period: June 30, 2015 2014 Shares issuable upon exercise of stock options Shares issuable upon exercise of outstanding warrants(1) — Shares issuable upon the release of restricted stock awards Shares issuable upon the vesting of restricted stock awards related to licensing agreement — (1) At June 30, 2014 , represents warrants to purchase 75,000 shares of common stock issued under a consulting agreement. Revenue Recognition Laboratory Service Revenue. The Company’s revenues will be generated primarily by the Cologuard ® test. Revenues are recognized when persuasive evidence of an arrangement exists, delivery has occurred or services have been rendered, the price is fixed and determinable, and collectability is reasonably assured. The Company assesses whether the fee is fixed or determinable and if the collectability is reasonably assured based on the nature of the fee charged for the laboratory services delivered and whether there are existing contractual arrangements with customers, third-party commercial payors (insurance carriers and health plans) or coverage of the test by Centers for Medicare & Medicaid Services (CMS). In addition, when evaluating collectability, the Company considers factors such as collection experience for the healthcare industry, the financial standing of customers or third-party commercial payors, and whether it has sufficient collection history to reliably estimate a payor's individual payment patterns. A portion of laboratory service revenues earned by the Company will be initially recognized on a cash basis because the above criteria will not have been met at the time the test results are delivered. The Company generally bills third-party payors upon generation and delivery of a test result to the ordering physician following completion of a test. Patients may have out-of-pocket costs for amounts not covered by their insurance carrier and the Company bills the patient directly for these amounts in the form of co-pays and deductibles in accordance with their insurance carrier and health plans. Some third-party payors may not cover the Cologuard test under their reimbursement policies. Consequentl y , in such cases, the Company pursues reimbursement on a case-by-case basis directly from the patient. For laboratory services performed, where the collectability is not reasonably assured, the Company will continue to recognize revenues upon cash collection until it can reliably estimate the amount that would be ultimately collected for the Cologuard test. In order to begin to record revenue on an accrual basis in these scenarios, the Company expects to use at least several months of payment history, review the number of tests paid against the number of tests billed, and consider the payor's outstanding balance for unpaid tests to determine whether payments are being made for a consistently high percentage of tests billed and at appropriate amounts given the contracte d or historical payment amount . With regard to Cologuard tests covered by Medicare, the national coverage determination for Cologuard was released by CMS on October 9, 2014 and for these tests, revenue is recognized on an accrual basis once the services have been performed as the price is fixed or determinable, and collectability is reasonably assured . The Company recognized approximately $ 8.1 million and $12.4 million in laboratory service revenue for the three and six months ended June 30 , 2015. License fees. License fees for the licensing of product rights are recorded as deferred revenue upon receipt of cash and recognized as revenue on a straight-line basis over the license period. As more fully described in the 2014 Form 10-K, in connection with the Company’s January 2009 strategic transaction with Genzyme Corporation, the Company deferred the initial $16.65 million in cash received at closing and amortized that up-front payment on a straight-line basis into revenue over the initial five-year collaboration period which ended in January 2014. In addition, in 2010 the Company received holdback amounts of $1.85 million, which were deferred at the time of receipt and were amortized on a straight-line basis into revenue over the then remaining term of the collaboration period. In addition, the Company deferred $1.53 million premium related to common stock purchased by Genzyme and amortized that amount on a straight-line basis into revenue over the initial five -year collaboration period which ended in January 2014. The Company did not recognize revenue in connection with the amortization of the up-front payments from Genzyme during the three and six months ended June 30 , 2015. The Company recognized approximately $0.3 million in license fee revenue in connection with the amortization of the up-front payments from Genzyme during the six months ended June 30 , 2014. There was no license fee revenue recognized during the three months ended June 30, 2014. Inventory Inventory is stated at the lower of cost or market value (net realizable value). The Company determines the cost of inventory using the first-in, first out method (FIFO). The Company estimates the recoverability of inventory by reference to internal estimates of future demands and product life cycles, including expiration. The Company periodically analyzes its inventory levels to identify inventory that may expire prior to expected sale or has a cost basis in excess of its estimated realizable value, and records a charge to cost of sales for such inventory as appropriate. In addition, the Company's products are subject to strict quality control and monitoring which the Company performs throughout the manufacturing process. If certain batches or units of product no longer meet quality specifications or become obsolete due to expiration, the Company records a charge to cost of sales to write down such unmarketable inventory to its estimated realizable value. Direct and indirect manufacturing costs incurred during process validation and for other research and development activities, which are not permitted to be sold, have been expensed to research and development. Raw material inventory that was purchased in prior periods, and expensed to research and development, may still be on hand and used toward the production of commercial Cologuard, provided it has an appropriate remaining shelf life. This inventory is expected to provide a gross margin benefit to the Company in future periods of $0.3 million if the entirety of those balances are allocated to inventory produced for resale and not allocated to research and development activities. Inventory consist of the following (amount in thousands): June 30, December 31, 2015 2014 Raw Materials $ $ Semi-finished and finished goods Total inventory $ $ Foreign Currency Translation For the Company’s international subsidiary, formed in 2014, the local currency is the functional currency. Assets and liabilities of this subsidiary are translated into United States dollars at the period-end exchange rate or historical rates as appropriate. Consolidated statements of earnings amounts are translated at average exchange rates for the period. The cumulative translation adjustments resulting from changes in exchange rates are included in the consolidated balance sheet as a component of accumulated other comprehensive income in total Ex act Sciences Corporation’s shareholders’ equity. Transaction gains and losses are included in the consolidated statement of operations in 2015. Reclassifications Certain prior period amounts have been reclassified to conform to the current period presentation in the consolidated financial statements and accompanying notes to the consolidated financial statements.

MAYO LICENSE AGREEMENT

MAYO LICENSE AGREEMENT	6 Months Ended
	Jun. 30, 2015
MAYO LICENSE AGREEMENT
MAYO LICENSE AGREEMENT	(3) MAYO LICENSE AGREEMENT Overview As more fully described in the 2014 Form 10-K, in June 2009 the Company entered into a license agreement (the “MAYO Agreement”) with MAYO Foundation for Medical Education and Research (“MAYO”). Pursuant to the MAYO Agreement, the Company granted MAYO two common stock purchase warrants with an exercise price of $1.90 per share covering 1,000,000 and 250,000 shares of common stock, respectively. The MAYO Agreement required the Company to make payments to MAYO for up-front fees, fees upon the achievement of certain milestones, and certain other payments. In addition to the license to intellectual property owned by MAYO, MAYO agreed to make available personnel to provide the Company product development and research and development assistance. The Company agreed to make royalty payments to MAYO on potential future net sales of any products developed from the licensed technology. The Company sought rights to the MAYO intellectual property for the specific purpose of developing a non-invasive, stool-based DNA screening test for colorectal cancer. At the time the MAYO A greement was executed, the Company’s sole focus was the development of such a test. Accordingly, the Company recognized the initial payments and expenses related to the warrants at the time of the transaction and the amounts were expensed to research and development as there were no anticipated alternative future uses associated with the intellectual property. Warrants The warrants granted to MAYO were valued based on a Black-Scholes pricing model at the date of the grant. The warrants were granted with an exercise price of $1.90 per share of common stock. The grant to purchase 1,000,000 shares was immediately exercisable and the grant to purchase 250,000 shares vested and became exercisable over a four year period. MAYO exercised the warrant to purchase 1,000,000 shares through several partial exercises. As of September 2011, the warrant covering 1,000,000 shares was fully exercised. MAYO exercised the warrant to purchase 250,000 shares through partial exercises, the last of which occurred in June 2014. In June 2014, MAYO exercised the remaining shares of this warrant by utilizing the cashless exercise provision contained in the warrant. As a result of this exercise for a gross amount of 80,000 shares, in lieu of paying a cash exercise price, MAYO forfeited its right with respect to 10,587 shares leaving it with a net amount of 69,413 shares. Following this exercise, all of MAYO’s warrants to purchase the Company’s common stock were fully exercised. Royalty Payments Under the MAYO Agreement, the Company agreed to make royalty payments to MAYO based on a percentage of net sales of products developed from the licensed technology starting in the third year of the agreement. In 2012, minimum royalty payments were $10,000. For each year from 2015 through 2033 (the year the last patent expires), the minimum royalty payments are $25,000 per year. Other Payments Other payments under the MAYO Agreement include an upfront payment of $80,000 , a milestone payment of $250,000 on the commencement of patient enrollment in a human cancer screening clinical trial, and a $500,000 payment upon FDA approval of the Company’s Cologuard test. The upfront payment of $80,000 was made in the third quarter of 2009 and expensed to research and development in the second quarter of 2009. The Company began enrollment in human cancer screening clinical trial in June 2011 and the milestone payment of $250,000 was made and expensed to research and development in June 2011. The Company received FDA approval for its Cologuard test in August 2014, and the milestone payment of $500,000 was made and expensed to research and development in August 2014. In addition, the Company pays MAYO for research and development efforts. During the three and six months ended June 30, 2015, the Company made payments of $ 0.4 million and $1. 6 million, respectively. At June 30, 2015 the Company recorded an estimated liability in the amount of $0.7 million for MAYO’s research and development efforts. During the three and six months ended June 30, 2014, the Company made research and development payments to MAYO of $0.2 million and $0.7 million, respectively. At June 30, 2014 the Company recorded an estimated liability in the amount of $1.0 million for research and development efforts. May 2012 Amendment In May 2012 the Company expanded the relationship with MAYO through an amendment to the MAYO Agreement. As part of the amendment, MAYO expanded the Company’s license to include all gastrointestinal cancers and diseases, and new cancer screening applications of stool- and blood-based testing. As part of the amendment, the Company agreed to make restricted stock grants to MAYO upon the achievement of certain milestones with respect to commercial launch of the Company’s second and third licensed products. Additionally, the Company agreed to make milestone payments once certain sales levels are reached on licensed products. It is uncertain as to when or if these milestones will be met; therefore, the milestone payments have not been recorded as a liability. The Company evaluates the status of the milestone payments at each reporting date to determine if a liability should be recorded for the milestone payment. February 2015 Amendment In February 2015 the Company amended and restated the MAYO Agreement to extend the Company’s arrangement with MAYO for an additional five years and to broaden the Company’s and MAYO’s collaboration efforts to develop screening, surveillance and diagnostic tests and tools for use in connection with gastrointestinal cancers, precancers, diseases and conditions. Under the amended and restated agreement (the “Restated MAYO Agreement”), MAYO agreed to continue to make personnel available during the additional five year period to provide the Company product development and research and development assistance. The Restated MAYO Agreement defines “gastrointestinal” to include certain airway organs (including the pharynx, larynx, trachea, bronchi and lungs) and certain head and neck organs (including nasal passages, mouth and throat). The Restated MAYO Agreement also reflects an expanded list of patent rights that MAYO licenses to the Company. Pursuant to the Restated MAYO Agreement, the Company agreed to pay MAYO an additional $5.0 million, payable in five annual $1.0 million installments, the first of which was due February 10, 2015. The first $1.0 million payment was made to MAYO in February 2015 and was capitalized to pre-paid assets and will be amortized to research and development expenses straight-line over the initial 12 month research period. Additionally, the Company will make milestone payments once certain sales levels are reached on licensed products. It is uncertain as to when or if these milestones will be met; therefore, the milestone payments have not been recorded as a liability. The Company evaluates the status of the milestone payments at each reporting date to determine if a liability should be recorded for the milestone payment.

MD ANDERSON LICENSE AGREEMENT

MD ANDERSON LICENSE AGREEMENT	6 Months Ended
	Jun. 30, 2015
MD ANDERSON LICENSE AGREEMENT
MD ANDERSON LICENSE AGREEMENT	(4) MD ANDERSON LICENSE AGREEMENT Overview On April 10, 2015, the Company entered into a Joint Development and License Agreement (“MD Anderson Agreement”) with the University of Texas M.D. Anderson Cancer Center (“MD Anderson”) to jointly develop, clinically validate and obtain FDA approval and CMS coverage and reimbursement for in-vitro diagnostic and screening tools for the early detection of lung cancer (the “IVD Assays”). Under the MD Anderson Agreement , MD Anderson granted the Company an exclusive license which provides the Company with the intellectual property rights for the purpose of developing, manufacturing and marketing IVD Assays. In addition to granting the Company a license to the covered MD Anderson intellectual property, MD Anderson agreed to make personnel available to provide the Company product development and research and development assistance. Pursuant to the MD Anderson Agreement , the Company is obligated to reimburse IVD Assay development expenses incurred by the staff at MD Anderson, up to a maximum of $1.0 million per year for the first two years of the MD Anderson Agreement . At June 30, 2015 the Company recorded an estimated liability in the amount of $0.3 million for IVD Assay development efforts. As of June 30, 2015 the Company has not made payments for IVD Assay development costs. Beginning on April 30, 2015 and continuing through December 31, 2016, the Company is required to pay a quarterly fee of $0.3 million for the use of samples already collected prior to the effective date of the agreement which will be utilized in the continued research and development of IVD Assays . As of June 30, 2015 the Company recorded an estimated liability in the amount of $0.5 million for the use of samples provided by MD Anderson. Further, the Company has agreed to pay MD Anderson a low single digit royalty on the Company’s net sales of products using the licensed MD Anderson intellectual property. As of June 30, 2015 there have been no commercial sales of such product.

STOCK-BASED COMPENSATION

STOCK-BASED COMPENSATION	6 Months Ended
	Jun. 30, 2015
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION	(5 ) STOCK-BASED COMPENSATION Stock-Based Compensation Plans The Company ’s stock-based compensation plans include the 2010 Omnibus Long-Term Incentive Plan (As Amended and Restated Effective April 28, 2015) , the 2010 Employee Stock Purchase Plan, the 2015 Inducement Grant Plan and the 2000 Stock Option and Incentive Plan (collectively, the “Stock Plans”). Stock-Based Compensation Expense The Company recorded $4.6 million and $8.2 million in stock-based compensation expense during the three and six months ended June 30, 2015 in connection with the amortization of restricted stock and restricted stock unit awards, stock purchase rights granted under the Company’s employee stock purchase plan and stock options granted to employees, non-employee consultants and non-employee directors. The Company recorded $2.5 million and $4.5 million in stock-based compensation expense during the three and six months ended June 30 , 2014 in connection with the amortization of restricted stock and restricted stock unit awards, stock purchase rights granted under the Company’s employee stock purchase plan and stock options granted to employees and non-employee directors. Determining Fair Value Valuation and Recognition – The fair value of each option award is estimated on the date of grant using the Black-Scholes option pricing model based on the assumptions in the table below. The estimated fair value of employee stock options is recognized to expense using the straight-line method over the vesting period. Expected Term – Expected term is based on the Company’s historical life data and is determined using the average of the vesting period and the contractual life of the stock options granted. Expected Volatility - Expected volatility is based on the Company’s historical stock volatility data over the expected term of the awards. Risk-Free Interest Rate - The Company bases the risk-free interest rate used in the Black-Scholes valuation model on the implied yield currently available on U.S. Treasury zero-coupon issues with an equivalent expected term. Forfeitures - The Company records stock-based compensation expense only for those awards that are expected to vest. A forfeiture rate is estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from initial estimates. The Company’s f orfeiture rate used in the six months ended June 30 , 201 5 and 2014 was 4.99% . The fair value of each restricted stock and restricted stock unit award is determined on the date of grant using the closing stock price on that day. Three Months Ended Six Months Ended June 30, June 30, 2015 2014 2015 2014 Option Plan Shares Risk-free interest rates (1) (1) 1.5% - 1.92% 1.96% Expected term (in years) (1) (1) 6.25 6.25 Expected volatility (1) (1) 67.1% - 73.2% 80.8% Dividend yield (1) (1) 0 % 0% Weighted average fair value per share of options granted during the period (1) (1) $ 15.81 $ 9.86 ESPP Shares Risk-free interest rates 0.25% - 0.6% 0.1% - 0.41% 0.25% - 0.6% 0.1% - 0.41% Expected term (in years) 0.5 - 2 0.5 - 2 0.5 - 2 0.5 - 2 Expected volatility 51.2% - 57.4% 42.5% - 49.5% 51.2% - 57.4% 42.5% - 49.5% Dividend yield 0 % 0% 0 % 0% Weighted average fair value per share of stock purchase rights granted during the period $ 7.48 $ 3.76 $ 7.48 $ 3.76 (1) The Company did not grant options under its 2010 Option Plan during the period indicated. Stock Option and Restricted Stock Activity A summary of stock option activity under the Stock Plans during the six months ended June 30 , 2015 is as follows: Weighted Weighted Average Average Remaining Aggregate Exercise Contractual Intrinsic Options Shares Price Term (Years) Value(1) (Aggregate intrinsic value in thousands) Outstanding, December 31, 2014 $ Granted Exercised Forfeited Outstanding, June 30, 2015 $ $ Exercisable, June 30, 2015 $ $ Vested and expected to vest, June 30, 2015 $ $ (1) The aggregate intrinsic value of options outstanding, exercisable and vested and expected to vest is calculated as the difference between the exercise price of the underlying options and the market price of the Company’s common stock for options that had exercise prices that were lower than the $29.74 market price of the Co mpany’s common stock at June 30 , 2015. The total intrinsic value of op tions exercised during the six months ended June 30 , 2015 and 2014 was $1.8 million and $0.7 million, respectively. As of June 30 , 2015, there was $38.2 million of total unrecognized compensation cost related to non-vested share-based compensation arrangements granted under all Stock Plans. Total unrecognized compensation cost will be adjusted for future changes in forfeitures. The Company expects to recognize that cost over a weighted average period of 3.1 years. A summary of restricted stock activity under the Stock Plans during the six months ended June 30 , 2015 is as follows: Weighted Restricted Average Grant Shares Date Fair Value Outstanding, January 1, 2015 $ Granted Released Forfeited Outstanding, June 30, 2015 $

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	6 Months Ended
	Jun. 30, 2015
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS	(6 ) FAIR VALUE MEASUREMENTS The FASB has issued authoritative guidance which requires that fair value should be based on the assumptions market participants would use when pricing an asset or liability and establishes a fair value hierarchy that prioritizes the information used to develop those assumptions. Under the standard, fair value measurements are separately disclosed by level within the fair value hierarchy. The fair value hierarchy establishes and prioritizes the inputs used to measure fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs. Observable inputs are inputs that reflect the assumptions that market participants would use in pricing the asset or liability developed based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company’s assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. The three levels of the fair value hierarchy established are as follows: Level 1 Quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access as of the reporting date. Active markets are those in which transactions for the asset or liability occur in sufficient frequency and volume to provide pricing information on an ongoing basis. Level 2 Pricing inputs other than quoted prices in active markets included in Level 1, which are either directly or indirectly observable as of the reporting date. These include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active. Level 3 Unobservable inputs that reflect the Company’s assumptions about the assumptions that market participants would use in pricing the asset or liability. Unobservable inputs shall be used to measure fair value to the extent that observable inputs are not available. Fixed-income securities and mutual funds are valued using a third party pricing agency. The valuation is based on observable inputs including pricing for similar assets and other observable market factors. There has been no material change from period to period. The estimated fair value of the Company’s long-term debt based on a market approach was approximately $3.5 million and $1.0 million as of June 30 , 2015 and December 31, 2014 , respectively, and represent Level 2 measurements. When determining the estimated fair value of the Company’s long-term debt, the Company used market-based risk measurements, such as credit risk. The following table presents the Company’s fair value measurements as of June 30, 2015 along with the level within the fair value hierarchy in which the fair value measurements in their entirety fall. Amounts in the table are in thousands. Fair Value Measurement at June 30, 2015 Using: Quoted Prices Significant in Active Other Significant Markets for Observable Unobservable Fair Value at Identical Assets Inputs Inputs Description June 30, 2015 (Level 1) (Level 2) (Level 3) Cash and cash equivalents Cash and money market $ $ $ — $ — Available-for-Sale Marketable securities Corporate bonds — — U.S. government agency securities — — Asset backed securities — — Commercial paper — — Total $ $ $ $ — The following table presents the Company’s fair value measurements as of December 31, 2014 along with the level within the fair value hierarchy in which the fair value measurements in their entirety fall. Amounts in the table are in thousands. Fair Value Measurement at December 31, 2014 Using: Quoted Prices Significant in Active Other Significant Markets for Observable Unobservable Fair Value at Identical Assets Inputs Inputs Description December 31, 2014 (Level 1) (Level 2) (Level 3) Cash and cash equivalents Cash and money market $ $ $ — $ — Corporate bonds — — Available-for-Sale Marketable securities Corporate bonds — — U.S. government agency securities — — Asset backed securities — — Commercial paper — — Total $ $ $ $ — The following table summarizes gross unrealized losses and fair values of our investments in an unrealized loss position as of June 30 , 2015, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position: June 30, 2015 Less than 12 months 12 months or greater Total (In thousands) Fair Value Gross Unrealized Loss Fair Value Gross Unrealized Loss Fair Value Gross Unrealized Loss Marketable Securities Corporate bonds $ $ $ — $ — $ $ U.S. government agency securities — — Asset backed securities Total $ $ $ $ $ $ The following summarizes contractual underlying maturities of the Company’s available-for-sale investment s in debt securities at June 30 , 2015 (in thousands): Due one year or less Due after one year through two years Description Cost Fair Value Cost Fair Value Marketable Securities U.S. government agency securities $ $ $ — $ — Corporate bonds Commercial paper — — Asset backed securities — — Total $ $ $ $

NEW MARKET TAX CREDIT

NEW MARKET TAX CREDIT	6 Months Ended
	Jun. 30, 2015
NEW MARKET TAX CREDIT
NEW MARKET TAX CREDIT	(7) NEW MARKET TAX CREDIT During the fourth quarter of 2014, the Company received approximately $2.4 million in net proceeds from financing agreements related to working capital and capital improvements at one of its Madison, Wisconsin facilities. This financing arrangement was structured with an unrelated third party financial institution (the “Investor”), an investment fund, and its majority owned community development entity in connection with the Company’s participation in transactions qualified under the federal New Markets Tax Credit ( “ NMTC ” ) program, pursuant to Section 45D of the Internal Revenue Code of 1986, as amended. Through its participation in this program, the Company has secured low interest financing and the potential for future debt forgiveness related to the Madison, Wisconsin facility. Upon closing of this transaction, the Company provided an aggregate of approximately $5.1 million to the Investor, in the form of a loan receivable, with a term of seven years, bearing an interest rate of 2.74% per annum. This $5.1 million in proceeds plus capital from the Investor was used to make an aggregate $7.5 million loan to a subsidiary of the Company. This financing arrangement is not secured by any assets of the Company. On December 1, 2021, the Company would receive a repayment of its approximately $5.1 million loan. The $5.1 million is eliminated in the consolidation of the financial statements. This transaction also includes a put/call feature that becomes enforceable at the end of the seven-year compliance period. The Investor may exercise its put option or the Company can exercise the call, both of which will serve to trigger forgiveness of the net debt. The value attributable to the put/call is nominal. The $2.4 million is recorded in Other Long-Term Liabilities on the consolidated balance sheets. The benefit of this net $2.4 million contribution will be recognized as a decrease in expenses, included in cost of sales, as the Company amortizes the contribution liability over the seven -year compliance period as it is being earned through our on-going compliance with the conditions of the NMTC program. The Company has recorded $0.1 million and $0.2 million as a decrease of expenses for the three and six months ended June 30, 2015. At June 30, 2015, the remaining balance is $2.2 million. The Company incurred approximately $0.2 million of debt issuance costs related to the above transactions, which are being amortized over the life of the agreements. The Investor is subject to 100% recapture of the NMTC it receives for a period of seven years as provided in the Internal Revenue Code and applicable U.S. Treasury regulations. The Company is required to be in compliance with various regulations and contractual provisions that apply to the NMTC arrangement. Noncompliance with applicable requirements could result in the Investor’s projected tax benefits not being realized and, therefore, require the Company to indemnify the Investor for any loss or recapture of NMTC related to the financing until such time as the recapture provisions have expired under the applicable statute of limitations. The Company does not anticipate any credit recapture will be required in connection with this financing arrangement. The Investor and its majority owned community development entity are considered Variable Interest Entities (VIEs) and the Company is the primary beneficiary of the VIEs. This conclusion was reached based on the following: · The ongoing activities of the VIEs—collecting and remitting interest and fees and NMTC compliance—were all considered in the initial design and are not expected to significantly affect performance throughout the life of the VIE; · Contractual arrangements obligate the Company to comply with NMTC rules and regulations and provide various other guarantees to the Investor and community development entity; · The Investor lacks a material interest in the underling economics of the project; and · The Company is obligated to absorb losses of the VIEs. Because the Company is the primary beneficiary of the VIEs, they have been included in the consolidated financial statements. There are no other assets, liabilities or transactions in these VIEs outside of the financing transactions executed as part of the NMTC arrangement. The $5.1 million is eliminated in consolidation of the financial statements. Also in December 2014, in connection with the NMTC transaction, the Company entered into a land purchase option agreement with the owner of certain real property (land) adjacent to certain of the Company’s current Madison, Wisconsin facilities. The option is renewable annually in exchange for a fee. If the Company exercises its land purchase option, it will pay a fixed amount for the land. That fixed amount approximates the current fair value of the land. If the Company decides not to exercise its option, then on December 31, 2021 (which is after the seven year compliance period of the NMTC program) the Company must pay $1.2 million to the community development entity. As discussed below, the community development entity is a variable interest entity consolidated into the Company. The community development entity would then distribute this money to its members. The majority member of the community development entity is also the owner of the land subject to the land purchase option. The Company has recorded the obligation and the land purchase option asset for $1.2 million to reflect the Company’s assessment that it is probable that at least $1.2 million will be paid in the future based on resolution of the land purchase option. The asset is included in Other Long-Term Assets and the liability is included in Other Long-Term Liabilities on the consolidated balance sheet.

LONG-TERM DEBT

LONG-TERM DEBT	6 Months Ended
	Jun. 30, 2015
LONG TERM DEBT
LONG-TERM DEBT	( 8 ) LONG-TERM DEBT Building Purchase Mortgage During June 2015, the Company entered into a debt agreement with an unrelated third party financial institution to finance the purchase of the facility and contemplated improvements located at 501 Charmany Drive in Madison, WI for $5.1 million. Of the $5.1 million in funds available pursuant to the credit agreement, $3.7 million was directly applied towards the purchase price of the building in June 2015 and the remaining $1.4 million is a construction loan available to finance future improvements. The debt agreement is secured by the acquired building. Borrowings under the debt agreement bear interest at 4.15% per annum which is calculated on the outstanding principal balance. The Company is required to make interest only payments on the outstanding principal balance from July 12, 2015 through September 12, 2015 which is the period the Company anticipates completing all building related improvements. Beginning on October 12, 2015 and continuing through the maturity date, May 12, 2019, the Company is required to make monthly principal and interest payments of $31.2 thousand. The final principal and interest payment due on June 12, 2019 is $4.4 million. As of June 30, 2015 no draws have been made on the $1.4 million portion of the debt agreement related to construction of future improvements. There is an outstanding principal balance of $3.7 million, and the current portion is $0.2 million. Additionally, the Company has recorded $26.1 thousand in deferred financing costs which are being amortized through June 12, 2019. Wisconsin Department of Commerce Loan During November 2009, the Company entered into a loan agreement with the Wisconsin Department of Commerce pursuant to which the Wisconsin Department of Commerce agreed to lend up to $1.0 million to the Company subject to the Company’s satisfaction of certain conditions. The Company received the $1.0 million in December 2009. The terms of the loan are such that portions of the loan become forgivable if the Company meets certain job creation requirements at a specified wage rate. After the Company creates 100 full time positions, the principal shall be reduced at the rate of $5,405 for each new position created thereafter during the measurement period. The loan’s terms also contain a milestone that if the Company has created 185 new full ‑time positions as of June 30, 2015, the full amount of principal shall be forgiven. The loan bears an interest rate of 2% , which is subject to an increase to 4% if the Company does not meet certain job creation requirements. Both principal and interest payments under the loan agreement are deferred for five years. As of June 30, 2015, and during the term of the loan agreement, the Company has created 185 new, full-time Wisconsin-based jobs at the specified wage rate. The $1.0 million benefit associated with the expected loan forgiveness has been recorded as an offset to the operating expenses during the period ended June 30, 2015.

WISCONSIN ECONOMIC DEVELOPMENT

WISCONSIN ECONOMIC DEVELOPMENT TAX CREDIT	6 Months Ended
	Jun. 30, 2015
WISCONSIN ECONOMIC DEVELOPMENT TAX CREDIT
WISCONSIN ECONOMIC DEVELOPMENT TAX CREDIT	( 9 ) WISCONSIN ECONOMIC DEVELOPMENT TAX CREDITS During the first quarter of 2015, the Company entered into an agreement with the Wisconsin Economic Development Corporation (“WEDC”) to earn $9.0 million in refundable tax credits if the Company expends $26.3 million in capital investments and establishes and maintains 758 full-time positions in the state of Wisconsin over a seven year period. The tax credits earned should first be applied against the tax liability otherwise due and if there is no such liability present, the claim for tax credits will be reimbursed in cash to the Company. The maximum amount of the refundable tax credit to be earned for each year is fixed, and the Company earns the credits by meeting certain capital investment and job creation thresholds over the seven year period. Should the Company earn and receive the job creation tax credits but not maintain those full-time positions through the end of the agreement, the Company may be required to pay those credits back to WEDC. The Company will record the earned tax credits as job creation and capital investments occur. The amount of tax credits earned will be recorded as a liability and amortized as a reduction of operating expenses over the expected period of benefit. The tax credits earned from capital investment will be recognized as on offset to depreciation expense over the expected life of the acquired capital assets. The tax credits earned related to job creation will be recognized as an offset to operational expenses over the life of the agreement as the Company is required to maintain the minimum level of full-time positions through the seven year period. As of June 30, 2015 the Company has earned $1.4 million of tax credits. $0.2 million is a current asset and $1.2 million is a long term asset, reflecting when collection of the refundable tax credits is expected to occur. During the three and six month periods ending June 30, 2015, the Company has amortized $40.5 thousand of the credits earned as a reduction of operating expenses. At June 30, 2015, the Company also has a $0.2 million current liability and a $1. 2 million long term liability, reflecting when the expected benefit of the tax credit amortization will reduce future operating expenses.

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	6 Months Ended
	Jun. 30, 2015
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS	( 10 ) SUBSEQUENT EVENTS On July 24, 2015 the Company completed an underwritten public offering of 7.0 million shares of common stock at a price of $25.50 per share to the public. The Company received approximately $174.0 million of net proceeds from the offering, after deducting $4.5 million for the underwriting discounts and commissions and other stock issuance costs paid by the Company.

RECENT ACCOUNTING PRONOUNCEMENT

RECENT ACCOUNTING PRONOUNCEMENTS	6 Months Ended
	Jun. 30, 2015
New Accounting Pronouncements And Changes In Accounting Principles Abstract
RECENT ACCOUNTING PRONOUNCEMENTS	( 11 ) RECENT ACCOUNTING PRONOUNCEMENTS In April 2015, the Financial Accounting Standards Board issued Accounting Standards Update No. 2015-03, Simplifying the Presentation of Debt Issuance Costs, which requires debt issuance costs to be presented in the balance sheet as a direct deduction from the associated debt liability. The standard is effective for the Company’s financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. Early adoption is permitted for financial statements that have not been previously issued. The adoption of this standard is not expected to have a material impact on the Company’s consolidated financial statements. In May 2014, the Financial Accounting Standards Board issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers . ASU 2014-09 is a comprehensive new revenue recognition model requiring a company to recognize revenue to depict the transfer of goods or services to a customer at an amount reflecting the consideration it expects to receive in exchange for those goods or services. ASU 2014-09 may be applied using either a full retrospective or a modified retrospective approach and is effective for fiscal years, and interim periods within those years, beginning after December 15, 201 7 . The Company would be permitted to early adopt ASU 2014-09 for the fiscal year beginning after December 15, 2016, and interim periods therein. The Company is currently evaluating the impact of this amendment on its financial position and results of operations .

SUMMARY OF SIGNIFICANT ACCOUN19

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	6 Months Ended
	Jun. 30, 2015
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Principles of Consolidation	Principles of Consolidation The accompanying consolidated financial statements include the accounts of the Company’s wholly-owned subsidiaries, Exact Sciences Laboratories, LLC, Exact Sciences Finance Corporation, Exact Sciences Europe LTD, and variable interest entities. All significant intercompany transactions and balances have been eliminated in consolidation. References to “Exact”, “we”, “us”, “our”, or the “Company” refer to Exact Sciences Corporation and its wholly owned subsidiaries.
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
Cash and Cash Equivalents	Cash and Cash Equivalents The Company considers cash on hand, demand deposits in bank, money market funds, and all highly liquid investments with an original maturity of 90 days or less to be cash and cash equivalents. The Company had no restricted cash at June 30, 2015 and December 31, 2014 .
Marketable Securities	Marketable Securities Management determines the appropriate classification of debt securities at the time of purchase and re-evaluates such designation as of each balance sheet date. Debt securities carried at amortized cost are classified as held-to-maturity when the Company has the positive intent and ability to hold the securities to maturity. Marketable equity securities and debt securities not classified as held-to-maturity are classified as available-for-sale. Available-for-sale securities are carried at fair value, with the unrealized gains and losses, net of tax, reported in other comprehensive loss. The amortized cost of debt securities in this category is adjusted for amortization of premiums and accretion of discounts to maturity computed under the straight-line method, which approximates the effective interest method. Such amortization is included in investment income. Realized gains and losses and declines in value judged to be other-than-temporary on available-for-sale securities are included in investment income. The cost of securities sold is based on the specific identification method. Interest and dividends on securities classified as available-for-sale are included in investment income. At June 30, 2015 and December 31, 2014 , the Company’s investments were comprised of fixed income investments and all were deemed available-for-sale. The objectives of the Company’s investment strategy are to provide liquidity and safety of principal while striving to achieve the highest rate of return consistent with these two objectives. The Company’s investment policy limits investments to certain types of instruments issued by institutions with investment grade credit ratings and places restrictions on maturities and concentration by type and issuer. Investments in which the Company has the ability and intent, if necessary, to liquidate in order to support its current operations (including those with a contractual term greater than one year from the date of purchase) are classified as current. All of the Company’s investments are considered current. There were no realized losses for the six months ended June 30 , 2015 and 2014 . Realized gains were $4.8 thousand and $7.6 thousand for the six months ended June 30 , 2015 and 2014, respectively. We periodically review our investments in unrealized loss positions for other-than-temporary impairments. This evaluation includes, but is not limited to, significant quantitative and qualitative assessments and estimates regarding credit ratings, collateralized support, the length of time and significance of a security’s loss position, our intent not to sell the security, and whether it is more likely than not that we will have to sell the security before recovery of its cost basis. For the six months ended June 30 , 2015, no investments were identified with other-than-temporary declines in value. Available-for-sale securities at June 30, 2015 consisted of the following: June 30, 2015 Gains in Accumulated Losses in Accumulated Other Comprehensive Other Comprehensive Estimated Fair (In thousands) Amortized Cost Income Income Value Corporate bonds $ $ $ $ U.S. government agency securities — Asset backed securities Commercial paper — — Total available-for-sale securities $ $ $ $ Available-for-sale securities at December 31, 2014 consisted of the following: December 31, 2014 Gains in Accumulated Losses in Accumulated Other Comprehensive Other Comprehensive Estimated Fair (In thousands) Amortized Cost Income Income Value Corporate bonds $ $ $ $ U.S. government agency securities Certificates of deposit Commercial paper — — Total available-for-sale securities $ $ $ $
Changes in Accumulated Other Comprehensive Income	Changes in Accumulated Other Comprehensive Income (Loss) The amounts recognized in accumulated other comprehensive income (loss) (AOCI) for the six months ended June 30, 2015 were as follows (in thousands): Accumulated Cumulative Unrealized Other Translation Gain (Loss) Comprehensive Adjustment on Securities Income (Loss) Balance at December 31, 2014 $ — $ $ Other comprehensive (loss) income before reclassifications Amounts reclassified from accumulated other comprehensive loss — Net current period change in accumulated other comprehensive income (loss) Balance at June 30, 2015 $ $ $ The amounts recognized in AOCI for the six months ended June 30, 2014 were as follows (in thousands): Accumulated Cumulative Unrealized Other Translation Gain (Loss) Comprehensive Adjustment on Securities Income (Loss) Balance at December 31, 2013 $ — $ $ Other comprehensive (loss) income before reclassifications — Amounts reclassified from accumulated other comprehensive loss — Net current period change in accumulated other comprehensive income (loss) — Balance at June 30, 2014 $ — $ $ Amounts reclassified from accumulated other comprehensive income (loss) for the six months ended June 30, 2015 were as follows (in thousands): Affected Line Item in the Six Months Ended June 30, Details about AOCI Components Statement of Operations 2015 2014 Change in value of available-for-sale investments Sales and maturities of available-for-sale investments Investment income $ $ Total reclassifications $ $
Property and Equipment	Property and Equipment Property and equipment are stated at cost and depreciated using the straight-line method over the assets’ estimated useful lives. Maintenance and repairs are expensed when incurred; additions and improvements are capitalized. The estimated useful lives of fixed assets are as follows: Estimated Asset Classification Useful Life Laboratory equipment 3 - 5 years Computer equipment and computer software 3 years Leasehold improvements Lesser of the remaining lease term or useful life Furniture and fixtures 3 years At June 30, 2015 , the Company had $ 7.7 million of assets under construction which consisted of $4.8 million related to a new building purchase, $1.5 million of capitalized costs related to software projects, $0.8 million of costs related to machinery and equipment, and $0.6 million of costs related to leasehold improvement and building projects. Depreciation will begin on these assets once they are placed into service. The Company expect s to incur $2.4 million in costs to complete the building improvements of which $1. 4 million will be financed. The Company expect s to incur minimal costs to complete the leasehold improvements, machinery and equipment, and the software projects, and these projects are expected to be completed in 2015.
Software Capitalization Policy	Software Capitalization Policy Software development costs related to internal use software are incurred in three stages of development: the preliminary project stage, the application development stage, and the post-implementation stage. Costs incurred during the preliminary project and post-implementation stages are expensed as incurred. Costs in the application development stage that meet the criteria for capitalization are capitalized and amortized using the straight-line basis over the estimated economic useful life of the software.
Net Loss Per Share	Net Loss Per Share Basic net loss per common share was determined by dividing net loss applicable to common stockholders by the weighted average common shares outstanding during the period. Basic and diluted net loss per share are the same because all outstanding common stock equivalents have been excluded, as they are anti-dilutive due to the Company’s losses. The following potentially issuable common shares were not included in the computation of diluted net loss per share because they would have an anti-dilutive effect due to net losses for each period: June 30, 2015 2014 Shares issuable upon exercise of stock options Shares issuable upon exercise of outstanding warrants(1) — Shares issuable upon the release of restricted stock awards Shares issuable upon the vesting of restricted stock awards related to licensing agreement — (1) At June 30, 2014 , represents warrants to purchase 75,000 shares of common stock issued under a consulting agreement.
Revenue Recognition	Revenue Recognition Laboratory Service Revenue. The Company’s revenues will be generated primarily by the Cologuard ® test. Revenues are recognized when persuasive evidence of an arrangement exists, delivery has occurred or services have been rendered, the price is fixed and determinable, and collectability is reasonably assured. The Company assesses whether the fee is fixed or determinable and if the collectability is reasonably assured based on the nature of the fee charged for the laboratory services delivered and whether there are existing contractual arrangements with customers, third-party commercial payors (insurance carriers and health plans) or coverage of the test by Centers for Medicare & Medicaid Services (CMS). In addition, when evaluating collectability, the Company considers factors such as collection experience for the healthcare industry, the financial standing of customers or third-party commercial payors, and whether it has sufficient collection history to reliably estimate a payor's individual payment patterns. A portion of laboratory service revenues earned by the Company will be initially recognized on a cash basis because the above criteria will not have been met at the time the test results are delivered. The Company generally bills third-party payors upon generation and delivery of a test result to the ordering physician following completion of a test. Patients may have out-of-pocket costs for amounts not covered by their insurance carrier and the Company bills the patient directly for these amounts in the form of co-pays and deductibles in accordance with their insurance carrier and health plans. Some third-party payors may not cover the Cologuard test under their reimbursement policies. Consequentl y , in such cases, the Company pursues reimbursement on a case-by-case basis directly from the patient. For laboratory services performed, where the collectability is not reasonably assured, the Company will continue to recognize revenues upon cash collection until it can reliably estimate the amount that would be ultimately collected for the Cologuard test. In order to begin to record revenue on an accrual basis in these scenarios, the Company expects to use at least several months of payment history, review the number of tests paid against the number of tests billed, and consider the payor's outstanding balance for unpaid tests to determine whether payments are being made for a consistently high percentage of tests billed and at appropriate amounts given the contracte d or historical payment amount . With regard to Cologuard tests covered by Medicare, the national coverage determination for Cologuard was released by CMS on October 9, 2014 and for these tests, revenue is recognized on an accrual basis once the services have been performed as the price is fixed or determinable, and collectability is reasonably assured . The Company recognized approximately $ 8.1 million and $12.4 million in laboratory service revenue for the three and six months ended June 30 , 2015. License fees. License fees for the licensing of product rights are recorded as deferred revenue upon receipt of cash and recognized as revenue on a straight-line basis over the license period. As more fully described in the 2014 Form 10-K, in connection with the Company’s January 2009 strategic transaction with Genzyme Corporation, the Company deferred the initial $16.65 million in cash received at closing and amortized that up-front payment on a straight-line basis into revenue over the initial five-year collaboration period which ended in January 2014. In addition, in 2010 the Company received holdback amounts of $1.85 million, which were deferred at the time of receipt and were amortized on a straight-line basis into revenue over the then remaining term of the collaboration period. In addition, the Company deferred $1.53 million premium related to common stock purchased by Genzyme and amortized that amount on a straight-line basis into revenue over the initial five -year collaboration period which ended in January 2014. The Company did not recognize revenue in connection with the amortization of the up-front payments from Genzyme during the three and six months ended June 30 , 2015. The Company recognized approximately $0.3 million in license fee revenue in connection with the amortization of the up-front payments from Genzyme during the six months ended June 30 , 2014. There was no license fee revenue recognized during the three months ended June 30, 2014.
Inventory	Inventory Inventory is stated at the lower of cost or market value (net realizable value). The Company determines the cost of inventory using the first-in, first out method (FIFO). The Company estimates the recoverability of inventory by reference to internal estimates of future demands and product life cycles, including expiration. The Company periodically analyzes its inventory levels to identify inventory that may expire prior to expected sale or has a cost basis in excess of its estimated realizable value, and records a charge to cost of sales for such inventory as appropriate. In addition, the Company's products are subject to strict quality control and monitoring which the Company performs throughout the manufacturing process. If certain batches or units of product no longer meet quality specifications or become obsolete due to expiration, the Company records a charge to cost of sales to write down such unmarketable inventory to its estimated realizable value. Direct and indirect manufacturing costs incurred during process validation and for other research and development activities, which are not permitted to be sold, have been expensed to research and development. Raw material inventory that was purchased in prior periods, and expensed to research and development, may still be on hand and used toward the production of commercial Cologuard, provided it has an appropriate remaining shelf life. This inventory is expected to provide a gross margin benefit to the Company in future periods of $0.3 million if the entirety of those balances are allocated to inventory produced for resale and not allocated to research and development activities. Inventory consist of the following (amount in thousands): June 30, December 31, 2015 2014 Raw Materials $ $ Semi-finished and finished goods Total inventory $ $
Foreign Currency Translation	Foreign Currency Translation For the Company’s international subsidiary, formed in 2014, the local currency is the functional currency. Assets and liabilities of this subsidiary are translated into United States dollars at the period-end exchange rate or historical rates as appropriate. Consolidated statements of earnings amounts are translated at average exchange rates for the period. The cumulative translation adjustments resulting from changes in exchange rates are included in the consolidated balance sheet as a component of accumulated other comprehensive income in total Ex act Sciences Corporation’s shareholders’ equity. Transaction gains and losses are included in the consolidated statement of operations in 2015.

SUMMARY OF SIGNIFICANT ACCOUN20

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	6 Months Ended
	Jun. 30, 2015
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Schedule of available-for-sale securities	Available-for-sale securities at June 30, 2015 consisted of the following: June 30, 2015 Gains in Accumulated Losses in Accumulated Other Comprehensive Other Comprehensive Estimated Fair (In thousands) Amortized Cost Income Income Value Corporate bonds $ $ $ $ U.S. government agency securities — Asset backed securities Commercial paper — — Total available-for-sale securities $ $ $ $ Available-for-sale securities at December 31, 2014 consisted of the following: December 31, 2014 Gains in Accumulated Losses in Accumulated Other Comprehensive Other Comprehensive Estimated Fair (In thousands) Amortized Cost Income Income Value Corporate bonds $ $ $ $ U.S. government agency securities Certificates of deposit Commercial paper — — Total available-for-sale securities $ $ $ $
Schedule of amounts recognized in accumulated other comprehensive income (AOCI)	The amounts recognized in accumulated other comprehensive income (loss) (AOCI) for the six months ended June 30, 2015 were as follows (in thousands): Accumulated Cumulative Unrealized Other Translation Gain (Loss) Comprehensive Adjustment on Securities Income (Loss) Balance at December 31, 2014 $ — $ $ Other comprehensive (loss) income before reclassifications Amounts reclassified from accumulated other comprehensive loss — Net current period change in accumulated other comprehensive income (loss) Balance at June 30, 2015 $ $ $ The amounts recognized in AOCI for the six months ended June 30, 2014 were as follows (in thousands): Accumulated Cumulative Unrealized Other Translation Gain (Loss) Comprehensive Adjustment on Securities Income (Loss) Balance at December 31, 2013 $ — $ $ Other comprehensive (loss) income before reclassifications — Amounts reclassified from accumulated other comprehensive loss — Net current period change in accumulated other comprehensive income (loss) — Balance at June 30, 2014 $ — $ $
Schedule of amounts reclassified from accumulated other comprehensive income	Amounts reclassified from accumulated other comprehensive income (loss) for the six months ended June 30, 2015 were as follows (in thousands): Affected Line Item in the Six Months Ended June 30, Details about AOCI Components Statement of Operations 2015 2014 Change in value of available-for-sale investments Sales and maturities of available-for-sale investments Investment income $ $ Total reclassifications $ $
Schedule of estimated useful lives of fixed assets	Estimated Asset Classification Useful Life Laboratory equipment 3 - 5 years Computer equipment and computer software 3 years Leasehold improvements Lesser of the remaining lease term or useful life Furniture and fixtures 3 years
Schedule of potentially issuable common shares not included in the computation of diluted net loss per share because they would have an anti-dilutive effect	June 30, 2015 2014 Shares issuable upon exercise of stock options Shares issuable upon exercise of outstanding warrants(1) — Shares issuable upon the release of restricted stock awards Shares issuable upon the vesting of restricted stock awards related to licensing agreement — (1) At June 30, 2014 , represents warrants to purchase 75,000 shares of common stock issued under a consulting agreement.
Schedule of inventory	Inventory consist of the following (amount in thousands): June 30, December 31, 2015 2014 Raw Materials $ $ Semi-finished and finished goods Total inventory $ $

STOCK-BASED COMPENSATION (Table

STOCK-BASED COMPENSATION (Tables)	6 Months Ended
	Jun. 30, 2015
STOCK-BASED COMPENSATION
Schedule of valuation assumptions	Three Months Ended Six Months Ended June 30, June 30, 2015 2014 2015 2014 Option Plan Shares Risk-free interest rates (1) (1) 1.5% - 1.92% 1.96% Expected term (in years) (1) (1) 6.25 6.25 Expected volatility (1) (1) 67.1% - 73.2% 80.8% Dividend yield (1) (1) 0 % 0% Weighted average fair value per share of options granted during the period (1) (1) $ 15.81 $ 9.86 ESPP Shares Risk-free interest rates 0.25% - 0.6% 0.1% - 0.41% 0.25% - 0.6% 0.1% - 0.41% Expected term (in years) 0.5 - 2 0.5 - 2 0.5 - 2 0.5 - 2 Expected volatility 51.2% - 57.4% 42.5% - 49.5% 51.2% - 57.4% 42.5% - 49.5% Dividend yield 0 % 0% 0 % 0% Weighted average fair value per share of stock purchase rights granted during the period $ 7.48 $ 3.76 $ 7.48 $ 3.76 (1) The Company did not grant options under its 2010 Option Plan during the period indicated.
Summary of stock option activity under the Stock Plans	Weighted Weighted Average Average Remaining Aggregate Exercise Contractual Intrinsic Options Shares Price Term (Years) Value(1) (Aggregate intrinsic value in thousands) Outstanding, December 31, 2014 $ Granted Exercised Forfeited Outstanding, June 30, 2015 $ $ Exercisable, June 30, 2015 $ $ Vested and expected to vest, June 30, 2015 $ $ (1) The aggregate intrinsic value of options outstanding, exercisable and vested and expected to vest is calculated as the difference between the exercise price of the underlying options and the market price of the Company’s common stock for options that had exercise prices that were lower than the $29.74 market price of the Co mpany’s common stock at June 30 , 2015. The total intrinsic value of op tions exercised during the six months ended June 30 , 2015 and 2014 was $1.8 million and $0.7 million, respectively.
Summary of restricted stock and restricted stock unit activity under the Stock Plans	Weighted Restricted Average Grant Shares Date Fair Value Outstanding, January 1, 2015 $ Granted Released Forfeited Outstanding, June 30, 2015 $

FAIR VALUE MEASUREMENTS (Tables

FAIR VALUE MEASUREMENTS (Tables)	6 Months Ended
	Jun. 30, 2015
FAIR VALUE MEASUREMENTS
Schedule of fair value measurements along with the level within the fair value hierarchy in which the fair value measurements fall	The following table presents the Company’s fair value measurements as of June 30, 2015 along with the level within the fair value hierarchy in which the fair value measurements in their entirety fall. Amounts in the table are in thousands. Fair Value Measurement at June 30, 2015 Using: Quoted Prices Significant in Active Other Significant Markets for Observable Unobservable Fair Value at Identical Assets Inputs Inputs Description June 30, 2015 (Level 1) (Level 2) (Level 3) Cash and cash equivalents Cash and money market $ $ $ — $ — Available-for-Sale Marketable securities Corporate bonds — — U.S. government agency securities — — Asset backed securities — — Commercial paper — — Total $ $ $ $ — The following table presents the Company’s fair value measurements as of December 31, 2014 along with the level within the fair value hierarchy in which the fair value measurements in their entirety fall. Amounts in the table are in thousands. Fair Value Measurement at December 31, 2014 Using: Quoted Prices Significant in Active Other Significant Markets for Observable Unobservable Fair Value at Identical Assets Inputs Inputs Description December 31, 2014 (Level 1) (Level 2) (Level 3) Cash and cash equivalents Cash and money market $ $ $ — $ — Corporate bonds — — Available-for-Sale Marketable securities Corporate bonds — — U.S. government agency securities — — Asset backed securities — — Commercial paper — — Total $ $ $ $ —
Schedule of gross unrealized losses and fair values of investments in an unrealized loss position	June 30, 2015 Less than 12 months 12 months or greater Total (In thousands) Fair Value Gross Unrealized Loss Fair Value Gross Unrealized Loss Fair Value Gross Unrealized Loss Marketable Securities Corporate bonds $ $ $ — $ — $ $ U.S. government agency securities — — Asset backed securities Total $ $ $ $ $ $
Summary of contractual maturities available for the sale of investments in debt securities	The following summarizes contractual underlying maturities of the Company’s available-for-sale investment s in debt securities at June 30 , 2015 (in thousands): Due one year or less Due after one year through two years Description Cost Fair Value Cost Fair Value Marketable Securities U.S. government agency securities $ $ $ — $ — Corporate bonds Commercial paper — — Asset backed securities — — Total $ $ $ $

SUMMARY OF SIGNIFICANT ACCOUN23

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details)	6 Months Ended
	Jun. 30, 2015USD ($)item	Jun. 30, 2014USD ($)	Dec. 31, 2014USD ($)
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Restricted cash	$ 0		$ 0
Number of objectives of the entity's investment strategy | item	2
Realized gains	$ 4,800	$ 7,600
Minimum contractual term of certain current investments which can be liquidated	1 year
Available-for-sale securities
Amortized Cost	$ 177,032,000		224,740,000
Gains in Accumulated Other Comprehensive Income	54,000		46,000
Losses in Accumulated Other Comprehensive Income	(33,000)		(161,000)
Estimated Fair Value	177,053,000		224,625,000
Realized losses	0	$ 0
Corporate bonds [Member]
Available-for-sale securities
Amortized Cost	120,096,000		141,239,000
Gains in Accumulated Other Comprehensive Income	28,000		21,000
Losses in Accumulated Other Comprehensive Income	(22,000)		(136,000)
Estimated Fair Value	120,102,000		141,124,000
U. S. government agency securities [Member]
Available-for-sale securities
Amortized Cost	4,249,000		18,687,000
Gains in Accumulated Other Comprehensive Income			8,000
Losses in Accumulated Other Comprehensive Income	(1,000)		(7,000)
Estimated Fair Value	4,248,000		18,688,000
Asset backed securities [Member]
Available-for-sale securities
Amortized Cost	48,687,000
Gains in Accumulated Other Comprehensive Income	26,000
Losses in Accumulated Other Comprehensive Income	(10,000)
Estimated Fair Value	48,703,000
Commercial paper [Member]
Available-for-sale securities
Amortized Cost	4,000,000		3,993,000
Estimated Fair Value	$ 4,000,000		3,993,000
Certificates of deposit [Member]
Available-for-sale securities
Amortized Cost			60,821,000
Gains in Accumulated Other Comprehensive Income			17,000
Losses in Accumulated Other Comprehensive Income			(18,000)
Estimated Fair Value			$ 60,820,000

SUMMARY OF SIGNIFICANT ACCOUN24

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 2) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance	$ (115)
Other comprehensive (loss) income before reclassifications	110	$ (24)
Amounts reclassified from accumulated other comprehensive loss	(6)	(12)
Net current period change in accumulated other comprehensive income (loss)	104	(36)
Ending Balance	(11)	89
Accumulated Translation Adjustment [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Other comprehensive (loss) income before reclassifications	(32)
Net current period change in accumulated other comprehensive income (loss)	(32)
Ending Balance	(32)
Accumulated Net Unrealized Investment Gain Loss [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Other comprehensive (loss) income before reclassifications	142	(24)
Amounts reclassified from accumulated other comprehensive loss	(6)	(12)
Net current period change in accumulated other comprehensive income (loss)	136	(36)
Ending Balance	$ 21	$ 89

SUMMARY OF SIGNIFICANT ACCOUN25

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 3) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning Balance	$ (115)
Other comprehensive (loss) income before reclassifications	110	$ (24)
Amounts reclassified from accumulated other comprehensive loss	(6)	(12)
Ending Balance	(11)	89
Accumulated Translation Adjustment [Member]
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Other comprehensive (loss) income before reclassifications	(32)
Ending Balance	(32)
Accumulated Net Unrealized Investment Gain Loss [Member]
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Other comprehensive (loss) income before reclassifications	142	(24)
Amounts reclassified from accumulated other comprehensive loss	(6)	(12)
Ending Balance	$ 21	$ 89

SUMMARY OF SIGNIFICANT ACCOUN26

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 4) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Details about AOCI Components
Investment income	$ (193)	$ (146)	$ (415)	$ (232)
Reclassification Out Of Accumulated Other Comprehensive Income (Loss) [Member]
Details about AOCI Components
Investment income			(6)	(12)
Accumulated Net Unrealized Investment Gain Loss [Member] | Reclassification Out Of Accumulated Other Comprehensive Income (Loss) [Member]
Details about AOCI Components
Investment income			$ (6)	$ (12)

SUMMARY OF SIGNIFICANT ACCOUN27

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 5) $ in Thousands	6 Months Ended
	Jun. 30, 2015USD ($)item	Dec. 31, 2014USD ($)
Property and equipment
Assets under construction	$ 7,664	$ 1,552
Software Capitalization Policy
Software development stages | item	3
Labratory equipment [Member] | Minimum [Member]
Property and equipment
Estimated Useful Life	3 years
Labratory equipment [Member] | Maximum [Member]
Property and equipment
Estimated Useful Life	5 years
Computer Equipment and Computer Software [Member]
Property and equipment
Estimated Useful Life	3 years
Assets under construction	$ 800
Leasehold Improvements [Member]
Property and equipment
Assets under construction	$ 600
Furniture and fixtures [Member]
Property and equipment
Estimated Useful Life	3 years
Software Development [Member]
Property and equipment
Assets under construction	$ 1,500

SUMMARY OF SIGNIFICANT ACCOUN28

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 6) - shares	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Common shares not included in the computation of diluted net loss per share
Potentially issuable common shares not included in the computation of diluted net loss per share because they would have an anti-dilutive effect	7,421,000	7,866,000
Additional disclosure
Number of shares of common stock that can be purchased through issuance of warrants under a consulting agreement		75,000
Stock Options [Member]
Common shares not included in the computation of diluted net loss per share
Potentially issuable common shares not included in the computation of diluted net loss per share because they would have an anti-dilutive effect	5,144,000	6,221,000
Warrants [Member]
Common shares not included in the computation of diluted net loss per share
Potentially issuable common shares not included in the computation of diluted net loss per share because they would have an anti-dilutive effect		75,000
Restricted Stock Awards [Member]
Common shares not included in the computation of diluted net loss per share
Potentially issuable common shares not included in the computation of diluted net loss per share because they would have an anti-dilutive effect	2,277,000	1,546,000
Restricted Stock Related To Licensing Agreement [Member]
Common shares not included in the computation of diluted net loss per share
Potentially issuable common shares not included in the computation of diluted net loss per share because they would have an anti-dilutive effect		24,000

SUMMARY OF SIGNIFICANT ACCOUN29

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 7) - USD ($) $ in Thousands	Jan. 27, 2009	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014	Dec. 31, 2010
Revenue Recognition
Laboratory service revenue		$ 8,119		$ 12,385
License fee revenue					$ 294
Gross Profit		3,025		3,079	294
Inventory
Raw materials		1,072	$ 1,019	1,072	1,019
Semi-finished and finished goods		5,203	2,998	5,203	2,998
Total inventory		$ 6,275	4,017	6,275	4,017	$ 4,017
Cologuard Member | Scenario, Forecast [Member]
Revenue Recognition
Gross Profit				$ 300
Collaboration License And Purchase Agreement [Member] | Genzyme Corporation [Member]
Revenue Recognition
Amount of Deferred Revenue	$ 16,650
Amount subject to holdback							$ 1,850
Initial collaboration period	5 years
Amount of premium being amortized	$ 1,530
License fee revenue			$ 300		$ 300

MAYO LICENSE AGREEMENT (Details

MAYO LICENSE AGREEMENT (Details)

Jun. 11, 2009$ / sharesshares

Feb. 28, 2015USD ($)installment

Aug. 31, 2014USD ($)

Jun. 30, 2014USD ($)shares

Sep. 30, 2011shares

Jun. 30, 2011USD ($)

Jun. 30, 2009item

Jun. 30, 2015USD ($)

Jun. 30, 2014USD ($)

Sep. 30, 2009USD ($)

Jun. 30, 2015USD ($)

Jun. 30, 2014USD ($)

Dec. 31, 2012USD ($)

Other Payments

Charges incurred as part of the research collaboration

$ 8,115,000

$ 7,174,000

$ 14,686,000

$ 14,604,000

M A Y O Foundation [Member] | Warrant Covering One Million Shares [Member]

Warrants

Number of shares of common stock covered by warrants | shares

1,000,000

M A Y O Foundation [Member] | Warrant Covering Two Hundred Fifty Thousand Shares [Member]

Warrants

Warrants exercised, gross (in shares) | shares

250,000

Licensing Agreements [Member]

Amendments

Extension period

5 years

License fee payments

$ 1,000,000

Licensing Agreements [Member] | M A Y O Foundation [Member]

Warrants

Number of common stock purchase warrants granted | item

2

Other Payments

Upfront payment

$ 80,000

Milestone payment contingent upon FDA approval

$ 500,000

$ 250,000

Payments for research and development efforts

400,000

200,000

1,600,000

700,000

Estimated liability for research and development efforts

$ 1,000,000

$ 700,000

$ 1,000,000

700,000

$ 1,000,000

Amendments

License fees payable in five annual installments

$ 5,000,000

Number of annual installments in which license fees are payable | installment

5

License fee annual installment

$ 1,000,000

Licensing Agreements [Member] | M A Y O Foundation [Member] | Minimum [Member]

Warrants

Royalty payments

$ 25,000

$ 10,000

Licensing Agreements [Member] | M A Y O Foundation [Member] | Warrant Covering One Million Shares [Member]

Warrants

Exercise price (in dollars per share) | $ / shares

$ 1.90

Number of shares of common stock covered by warrants | shares

1,000,000

Warrants exercised, gross (in shares) | shares

1,000,000

Licensing Agreements [Member] | M A Y O Foundation [Member] | Warrant Covering Two Hundred Fifty Thousand Shares [Member]

Warrants

Exercise price (in dollars per share) | $ / shares

$ 1.90

Number of shares of common stock covered by warrants | shares

250,000

Vesting period of warrant

4 years

Warrants exercised, gross (in shares) | shares

80,000

Warrants forfeited (in shares) | shares

10,587

Warrants exercised, net of forfeiture (in shares) | shares

69,413

MD ANDERSON LICENSE AGREEMENT (

MD ANDERSON LICENSE AGREEMENT (Details) - MD Anderson License Agreement [Member] - USD ($) $ in Millions	Jun. 30, 2015	Apr. 10, 2015
Agreements
Maximum annual expense incurred by licensee in which the Company is obligated to reimburse		$ 1
Estimated liability for IVD Assay development efforts	$ 0.3
Quarterly fee required to be paid for the use of samples already collected prior to the effective date of the agreement		$ 0.3
Estimated liability for use of samples	0.5
Commerical sales of product to date	$ 0

STOCK-BASED COMPENSATION (Detai

STOCK-BASED COMPENSATION (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
STOCK-BASED COMPENSATION
Stock-based compensation expense	$ 4.6	$ 2.5	$ 8.2	$ 4.5

STOCK-BASED COMPENSATION (Det33

STOCK-BASED COMPENSATION (Details 2) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014
STOCK-BASED COMPENSATION
Forfeiture rate (as a percent)			4.99%	4.99%
Additional disclosures
Market price (in dollars per share)	$ 29.74		$ 29.74
Total intrinsic value of options exercised			$ 1,800	$ 700
Weighted Average Grant Date Fair Value
Unrecognized compensation cost	$ 38,200		$ 38,200
Weighted average period for recognition of unrecognized compensation cost			3 years 1 month 6 days
Share based compensation expense	$ 4,600	$ 2,500	$ 8,200	$ 4,500
Stock Options [Member]
Valuation assumptions
Risk-free interest rates (as a percent)				1.96%
Risk-free interest rates, minimum (as a percent)			1.50%
Risk-free interest rates, maximum (as a percent)			1.92%
Expected term			6 years 3 months	6 years 3 months
Expected volatility (as a percent)				80.80%
Expected volatility, minimum (as a percent)			67.10%
Expected volatility, maximum (as a percent)			73.20%
Dividend yield (as a percent)			0.00%	0.00%
Weighted average fair value per share of options granted during the period (in dollars per share)			$ 15.81	$ 9.86
Shares
Outstanding at the beginning of the period (in shares)			4,934,317
Granted (in shares)			340,978
Exercised (in shares)			(96,573)
Forfeited (in shares)			(35,025)
Outstanding at the end of the period (in shares)	5,143,697		5,143,697		4,934,317
Exercisable at the end of the period (in shares)	4,367,935		4,367,935
Vested and expected to vest at the end of the period (in shares)	5,104,986		5,104,986
Weighted Average Exercise Price
Outstanding at the beginning of the period (in dollars per share)			$ 3.63
Granted (in dollars per share)			23.51
Exercised (in dollars per share)			8.08
Forfeited (in dollars per share)			16.55
Outstanding at the end of the period (in dollars per share)	$ 4.77		4.77		$ 3.63
Exercisable at the end of the period (in dollars per share)	2.61		2.61
Vested and expected to vest at the end of the period (in dollars per share)	$ 4.68		$ 4.68
Weighted Average Remaining Contractual Term
Outstanding at the end of the period			5 years		5 years 2 months 12 days
Exercisable at the end of the period			4 years 3 months 18 days
Vested and expected to vest at the end of the period			5 years 2 months 12 days
Aggregate Intrinsic Value
Outstanding at the end of the period	$ 128,421		$ 128,421
Exercisable at the end of the period	118,496		118,496
Vested and expected to vest at the end of the period	$ 127,926		$ 127,926
Employee Stock [Member]
Valuation assumptions
Risk-free interest rates, minimum (as a percent)	0.25%	0.10%	0.25%	0.10%
Risk-free interest rates, maximum (as a percent)	0.60%	0.41%	0.60%	0.41%
Expected volatility, minimum (as a percent)	51.20%	42.50%	51.20%	42.50%
Expected volatility, maximum (as a percent)	57.40%	49.50%	57.40%	49.50%
Dividend yield (as a percent)	0.00%	0.00%	0.00%	0.00%
Weighted average fair value per share of stock purchase rights granted during the period (in dollars per share)	$ 7.48	$ 3.76	$ 7.48	$ 3.76
Weighted Average Grant Date Fair Value
Granted (in dollars per share)	$ 7.48	$ 3.76	$ 7.48	$ 3.76
Employee Stock [Member] | Minimum [Member]
Valuation assumptions
Expected term	6 months	6 months	6 months	6 months
Employee Stock [Member] | Maximum [Member]
Valuation assumptions
Expected term	2 years	2 years	2 years	2 years
Restricted Stock Awards And Restricted Stock Units R S U [Member]
Valuation assumptions
Weighted average fair value per share of stock purchase rights granted during the period (in dollars per share)			$ 23.62
Restricted Shares
Outstanding at the beginning of the period (in shares)			1,541,114
Granted (in shares)			1,104,074
Released (in shares)			(262,656)
Forfeited (in shares)			(105,825)
Outstanding at the end of the period (in shares)	2,276,707		2,276,707		1,541,114
Weighted Average Grant Date Fair Value
Outstanding at the beginning of the period (in dollars per share)			$ 13.86
Granted (in dollars per share)			23.62
Released (in dollars per share)			11.84
Forfeited (in dollars per share)			14.79
Outstanding at the end of the period (in dollars per share)	$ 18.78		$ 18.78		$ 13.86

FAIR VALUE (Details)

FAIR VALUE (Details) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014	Jun. 30, 2014	Dec. 31, 2013
Fair value measurements
Cash and cash equivalents	$ 33,765	$ 58,131	$ 20,708	$ 12,851
Marketable securities	177,053	224,625
Estimate Of Fair Value Fair Value Disclosure [Member]
Fair value measurements
Total	210,818	282,756
Fair Value Inputs Level1 [Member]
Fair value measurements
Total	33,765	53,569
Fair Value Inputs Level2 [Member]
Fair value measurements
Total	177,053	229,187
Long-term debt	3,500	1,000
Cash and Money Market [Member] | Estimate Of Fair Value Fair Value Disclosure [Member]
Fair value measurements
Cash and cash equivalents	33,765	53,569
Cash and Money Market [Member] | Fair Value Inputs Level1 [Member]
Fair value measurements
Cash and cash equivalents	33,765	53,569
Corporate bonds [Member] | Estimate Of Fair Value Fair Value Disclosure [Member]
Fair value measurements
Cash and cash equivalents		4,562
Marketable securities	120,101	141,124
Corporate bonds [Member] | Fair Value Inputs Level2 [Member]
Fair value measurements
Cash and cash equivalents		4,562
Marketable securities	120,101	141,124
U. S. government agency securities [Member] | Estimate Of Fair Value Fair Value Disclosure [Member]
Fair value measurements
Marketable securities	4,249	18,688
U. S. government agency securities [Member] | Fair Value Inputs Level2 [Member]
Fair value measurements
Marketable securities	4,249	18,688
Asset backed securities [Member] | Estimate Of Fair Value Fair Value Disclosure [Member]
Fair value measurements
Marketable securities	48,703	60,820
Asset backed securities [Member] | Fair Value Inputs Level2 [Member]
Fair value measurements
Marketable securities	48,703	60,820
Commercial Paper [Member]. | Estimate Of Fair Value Fair Value Disclosure [Member]
Fair value measurements
Marketable securities	4,000	3,993
Commercial Paper [Member]. | Fair Value Inputs Level2 [Member]
Fair value measurements
Marketable securities	$ 4,000	$ 3,993

FAIR VALUE (Details 2)

FAIR VALUE (Details 2) $ in Thousands	Jun. 30, 2015USD ($)
Fair value of investments in unrealized loss positions
Total fair value of available-for-sale securities in a continuous unrealized loss position for less than twelve months	$ 90,326
Total fair value of available for sale securities in a continuous unrealized loss position for greater than twelve months	1,432
Total fair value of available-for-sale securities in a continuous unrealized loss position	91,758
Gross unrealized loss of investments in unrealized loss positions
Total gross unrealized losses of available-for-sale securities in a continuous unrealized loss position for less than twelve months	(32)
Total gross unrealized losses of available-for-sale securities in a continuous unrealized loss position for greater than twelve months	(1)
Total gross unrealized losses of available-for-sale securities in a continuous unrealized loss position	(33)
Contractual maturities of the available-for-sale investments in debt securities, Cost
Due in one year or less	120,619
Due after one year through two years	56,412
Contractual maturities of the available-for-sale investments in debt securities, Fair Value
Due in one year or less	120,616
Due after one year through two years	56,437
Corporate bonds [Member]
Fair value of investments in unrealized loss positions
Total fair value of available-for-sale securities in a continuous unrealized loss position for less than twelve months	65,965
Total fair value of available-for-sale securities in a continuous unrealized loss position	65,965
Gross unrealized loss of investments in unrealized loss positions
Total gross unrealized losses of available-for-sale securities in a continuous unrealized loss position for less than twelve months	(21)
Total gross unrealized losses of available-for-sale securities in a continuous unrealized loss position	(21)
Contractual maturities of the available-for-sale investments in debt securities, Cost
Due in one year or less	112,370
Due after one year through two years	7,725
Contractual maturities of the available-for-sale investments in debt securities, Fair Value
Due in one year or less	112,367
Due after one year through two years	7,734
Asset backed securities [Member]
Fair value of investments in unrealized loss positions
Total fair value of available-for-sale securities in a continuous unrealized loss position for less than twelve months	21,863
Total fair value of available for sale securities in a continuous unrealized loss position for greater than twelve months	1,432
Total fair value of available-for-sale securities in a continuous unrealized loss position	23,295
Gross unrealized loss of investments in unrealized loss positions
Total gross unrealized losses of available-for-sale securities in a continuous unrealized loss position for less than twelve months	(10)
Total gross unrealized losses of available-for-sale securities in a continuous unrealized loss position for greater than twelve months	(1)
Total gross unrealized losses of available-for-sale securities in a continuous unrealized loss position	(11)
Contractual maturities of the available-for-sale investments in debt securities, Cost
Due after one year through two years	48,687
Contractual maturities of the available-for-sale investments in debt securities, Fair Value
Due after one year through two years	48,703
U. S. government agency securities [Member]
Fair value of investments in unrealized loss positions
Total fair value of available-for-sale securities in a continuous unrealized loss position for less than twelve months	2,498
Total fair value of available-for-sale securities in a continuous unrealized loss position	2,498
Gross unrealized loss of investments in unrealized loss positions
Total gross unrealized losses of available-for-sale securities in a continuous unrealized loss position for less than twelve months	(1)
Total gross unrealized losses of available-for-sale securities in a continuous unrealized loss position	(1)
Contractual maturities of the available-for-sale investments in debt securities, Cost
Due in one year or less	4,249
Contractual maturities of the available-for-sale investments in debt securities, Fair Value
Due in one year or less	4,249
Commercial Paper [Member].
Contractual maturities of the available-for-sale investments in debt securities, Cost
Due in one year or less	4,000
Contractual maturities of the available-for-sale investments in debt securities, Fair Value
Due in one year or less	$ 4,000

NEW MARKET TAX CREDIT (Details)

NEW MARKET TAX CREDIT (Details) - New Market Tax Credit Program [Member] - USD ($) $ in Millions	1 Months Ended	3 Months Ended		6 Months Ended
	Dec. 31, 2014	Jun. 30, 2015	Dec. 31, 2014	Jun. 30, 2015
Disclosures related to New Market Tax Credit
Net proceeds received from financing arrangements			$ 2.4
Loan issued to a subsidiary of the Company by the Investor	$ 7.5		7.5
Loan transaction eliminated in Company's consolidated financial statements	5.1		5.1
Fee related to not exercising the option to purchase certain real property under a specified agreement	$ 1.2
Amortization of contribution liability recognized as a decrease in expenses		$ 0.1		$ 0.2
Land purchase option asset		1.2		1.2
Land purchase option liability		1.2		1.2
Variable Interest Entity, Primary Beneficiary [Member]
Disclosures related to New Market Tax Credit
Debt issuance costs			0.2
Investor [Member]
Disclosures related to New Market Tax Credit
Loan receivable issued to Investor			$ 5.1
Term of the loan receivable			7 years
Loan receivable interest rate (as a percent)	2.74%		2.74%
Recapture (as a percentage)			100.00%
Recapture period			7 years
Investor [Member] | Variable Interest Entity, Primary Beneficiary [Member] | Long-term other liabilities
Disclosures related to New Market Tax Credit
Financing arrangement, amount outstanding	$ 2.4	$ 2.2	$ 2.4	$ 2.2

LONG-TERM DEBT (Details)

LONG-TERM DEBT (Details)	1 Months Ended		6 Months Ended
	Dec. 31, 2009USD ($)	Nov. 30, 2009USD ($)item	Jun. 30, 2015USD ($)	Dec. 31, 2014USD ($)
Debt Instrument [Line Items]
Long-term debt			$ 3,488,000	$ 1,000,000
Debt Agreement to Finance Building Purchase and Improvements [Member]
Debt Instrument [Line Items]
Maximum funds available under debt agreement			5,100,000
Amount of funds allocated to the purchase price of the building under the debt agreement			$ 3,700,000
Interest rate (as a percent)			4.15%
Total amount of principal and interest payments to be paid through the maturity date of the debt agreement			$ 31,200,000
Final principal and interest payment due under the debt agreement			4,400,000
Total debt outstanding			3,700,000
Current portion of long-term debt			200,000
Deferred financing costs			26,100,000
Wisconsin Department of Commerce Loan [Member]
Debt Instrument [Line Items]
Maximum funds available under debt agreement		$ 1,000,000
Interest rate (as a percent)		2.00%
Proceeds from long term debt	$ 1,000,000
Number of new full time positions required to be created for reduction in principal amount by specified amount | item		100
Reduction in the principal amount for each new position created		$ 5,405
Full time positions required to be created for forgiveness of full amount of principal | item		185
Interest rate if job creation requirements are not met (as a percent)		4.00%
Period for which both principal and interest payments are deferred		5 years
Benefit associated with the expected loan forgiveness that has been recorded as an offset to operating expenses			1,000,000
Construction Loans [Member] | Debt Agreement to Finance Building Purchase and Improvements [Member]
Debt Instrument [Line Items]
Maximum funds available under debt agreement			1,400,000
Total debt outstanding			$ 0

WISCONSIN ECONOMIC DEVELOPMEN38

WISCONSIN ECONOMIC DEVELOPMENT TAX CREDIT (Details) - Wisconsin Economic Development Tax Credit Agreement [Member]	3 Months Ended		6 Months Ended
	Jun. 30, 2015USD ($)	Mar. 31, 2015USD ($)item	Jun. 30, 2015USD ($)
Agreements
Refundable tax credits available, contingent on the Company expending $26.3 million in capital investments and establishing 758 full-time positions		$ 9,000,000
Capital investment expenditures over specified period, requirement to earn the refundable tax credits		$ 26,300,000
Full-time positions that must be created over a specified time period to earn the refundable tax credits | item		758
Period over which the capital investment expenditures must be incurred and the creation of full-time positions must be completed		7 years
Refundable tax credits earned	$ 1,400,000		$ 1,400,000
Amortization of tax credits	40,500		40,500
Short-term other assets
Agreements
Refundable tax credit receivable	200,000		200,000
Long-term other assets
Agreements
Refundable tax credit receivable	1,200,000		1,200,000
Short-term other liabilities
Agreements
Refundable tax credit, offsetting liability	200,000		200,000
Long-term other liabilities
Agreements
Refundable tax credit, offsetting liability	$ 1,200,000		$ 1,200,000

SUBSEQUENT EVENTS (Details)

SUBSEQUENT EVENTS (Details) - USD ($) $ / shares in Units, $ in Thousands, shares in Millions	Jul. 24, 2015	Jun. 30, 2014	Jun. 30, 2015
Subsequent event
Price of common stock (in dollars per share)			$ 29.74
Proceeds from sale of common stock, net of issuance costs		$ 137,670
Subsequent Event [Member] | Common Stock [Member]
Subsequent event
Issuance of common stock, net of issuance costs (in shares)	7
Price of common stock (in dollars per share)	$ 25.50
Proceeds from sale of common stock, net of issuance costs	$ 174,000
Underwriting discount and other stock issuance costs	$ 4,500