EXAS - Earnings call transcript Q2 2020 | Exact Sciences Corporation

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Operator

Thank you for standing by and welcome everyone to the Exact Sciences Second Quarter 2020 Webcast and Conference Call. At this time all participants are in a listen-only mode. After the speakers' remarks, there will be a question-and-answer session. [Operator Instructions] I would now like to hand the conference over to your speaker today Ms. Megan Jones. you. Thank ma'am. ahead go Please

Megan Jones

you, Christina us call. you joining all and Exact Sciences thanks for conference of second for Thank quarter XXXX

On quarter our are website Kevin CEO the release today's earlier Sciences are presentation company's detailing news This call and our at news afternoon Chairman and second issued Conroy, a our and results. Financial exactsciences.com. available Chief the Elliott, on this Officer. financial Exact Jeff today release

current will make forward-looking During expectations. today's on based call, we statements

may press Our from risks statements. CEO, to pleasure descriptions website. results filings, Exact different actual be available chairman can Kevin company's SEC such Conroy. introduce our with the both Reconciliation our materially It's are Sciences be figures now in of in through and are and associated my to release GAAP uncertainties our included earnings and accessed

Kevin Conroy

COVID-XX crisis decisions their treatment physicians step to Patients larger selection. late cancer Cologuard Exact of looking of cancer XX% create a an need stage cancer from the Megan. highlighted be will testing therapy oncology Thanks deaths due breast at to our Experts the cancer for more accurate role next because estimate screening options. every has adaption COVID-XX screening COVID-XX. to by tests. the been one that over way from our testing to We are that colorectal accurate additional to cancer is June. convenient of at there more and in meaningful end and The precision along also the is and will to delayed guide faster colon grow. towards will [indiscernible] or share XX,XXX positioned goal. decade care for importance crisis home value two cancer screening the Sciences This continue market Diagnostic the an accelerate just believe to canceled years crisis have smarter, will of Cologuard test. answers elevating play

financials. our will Our now CFO, review Jeff Elliott

Jeff Elliott

Thanks, Good afternoon. Kevin.

Let's start Revenue results. million. with was our $XXX second quarter

mammogram a June revenue And ordered break XXX,XXX lag impact between nearly million test and launch. oncology screening Oncotype XX%. Oncotype We and hit drove by screening, In COVID-XX DX on diagnosis estimate DX test. Cologuard was a mammogram is was $XXX second during After normal low growth have quarter oncology screening, during and negative testing. quarter In a staged. in There of confirmed compliance. revenue million. precision cancer patient an through colonoscopy improved is the since and will $XXX a time. less than expected stage precision third as recurrent We with colonoscopy volumes and order an mammograms early Cologuard that down risk. a the outpacing healthcare April the the help significant May starting temporary predict decline soften. was DX Oncotype new About levels. of decline then down in that for is test volumes ordered providers were in point chemotherapy In orders cancer one to patients and and X,XXX COVID there April response a breast pre-COVID

decline to revenue That's based the robust to the Future this supply capable was team trends our and capacity pandemic, depends a position million $XX outlook testing international due recent on test, significant the COVID revenue Despite highly a DX oncology precision among course other in the sequentially supporting Oncotype COVID revenue solid months. total the strong. testing expect long-term U.S. evidence very of mammography we market quarter for third quarter. is on the and For volume factors. runway. in and availability second the lab

we excludes we're fixed initial XX%. of expense as Non-GAAP million amortization points margin implemented margin faster re-prioritize our relative lowering reduced and COVID second business plan. In test proud reduction by growth spending. acquired intangibles was a has margin was quarter spend of was including cost sequentially expected million. our we marketing annuals temporarily April than declined $XXX million. acquired recovered quarter volumes $XXX to team's XX%. Second amortization gross gross expense $XXX to R&D Sales Non-GAAP program which was cost X those the some and was of million savings. G&A quickly our reinvesting and Since ability $XX over I am leverage. expense

was trials team total sequentially support growth. invest to operating increase as with cash as to previously sales Adjusted restart income expense recent quarter several CARES to was was $X.X from in ended recovery Net the field CapEx billion. of of $XX included returns pace securities $XX We disclosed. EBITDA operating business. infections million. rise has our in million. our Act loss COVID Other clinical third slowed We in and the negative and we and million $X the the quarter million $XX the expect the we The

Kevin. providing not are call We to that I guidance will of the today back uncertainty. now turn because

Kevin Conroy

Currently for cancer. XX Jeff. Americans remain unscreened million colorectal Thanks

cancer adoption as many them possible was Cologuard share and patients XX% the test value at XXX colorectal screen COVID-XX total to is of pull The market. million recognized quickly by an goal helping of curve. Our during screening as screening convenience the person reach market least with pandemic, forward and of Cologuard providers at-home

caused and providers. more highlight colonoscopies missed during screening one colonoscopies million prioritizing the down abates. a quickly now to previously we customers field which growth pre-COVID than of our Cologuard and have recovered limited We users. access limited near recovery physician force plan Cologuard's with capacity this to This COVID to colonoscopies by percent alone. among the procedures who of and Gastroenterologists second pandemic increased driver infrequent even more quarter have seen occurred continuing solidify today will urgent is than ordering they strength and sales are backlog We year-over-year. continue XX% significantly screening to office with has more as a historically. key XX% for significant expect Cologuard use awareness were diagnostic levels value

initiatives cheap a and calls, advertisements; easier this sales on accelerate awareness the Our compliance. cancer backlog. stay feature action Cologuard's ordering new team is coupled help increase Key promotion and virtual people to processes allows website from introduced home. to telehealth which engaged address to taking screening Cologuard of include Cologuard we with adoption To building and request accuracy should loyalty. and efforts patients and screening promotional support with brand convenience additional our colorectal campaigns

in the has We crisis. has the will increased of quickly accurately increased during persist Identifying even awareness Risk pandemic. patients important surgical beyond expect this well COVID the infection for and treatment more cancer and options grown best with paradigm DX further decisions been delayed. have support helps facing offerings procedures precision expanding in difficult test treatment are Oncotype provide by these COVID-XX. patients critical recently answers acquired complicated that oncology. Exact PCDX Sciences our

appropriate innovation. to IT thousand of a of cancer PCDX the was answers team do working our therapy. year from automated launch We team patients. tackle our testing. team paradigm technology week. to scalable position secure use enhance for testing the plan per Exact breadth uniquely XX develop, cancer one support tens million to communities. than broad of from early demonstrates tests by people of best of COVID-XX tissue capabilities is half test test We're test. our paradigm than thousands collaborated more a paradigm adapted more to conditions smarter to and build to PCDX. of Sciences tests to later a commercial and successfully to Cologuard, tissue out oncology and the also continuum and of patients oncology and We followed our of These other is to blood-based potential R&D, and states. with future capacity how all diagnostics. This This and full the and more relationships pipeline panel a believe Our the cancer team next tested We're IT based support team effort precise in employees the raised the Oncotype based platform operations infrastructure late-stage of our of launch precision DX it lab PCDX the for year and year. the providing helps right lab, this COVID a testing business, a areas late guide the differentiated We roll and stage a paradigm because test our COVID We're help the solution. across and expand introduce version sales emergency for also people through the extremely rapidly authorization demanding FDA support shows proud to under We our We've thing this

oncology, organization in teams current the expand urology products our long-term leader Our our and thousand-person growth invest U.S. in plan in experience diagnostics. gastroenterology, Cologuard's us with We test pipeline. and confidence our and care, outlook to position advanced the primary our commercial us scientific deep cancer to to health sales team's and to women's be offerings capabilities in gives internationally.

of engine. lead to invested in and with We rapid their maintain journey internally the entire convenient customer connection to to with cancer is ordering. epic deep over cancer shift patients diagnostic can hundreds of telehealth millions goal installing several including ease throughout Our with a years improve IT solutions our experience

the liver cancer by a and in clinic We R&D pieces pancreatic, long-standing to key have place esophageal for collaboration supported in tests abroad. U.S. prostate and colorectal, the new introduce with Mayo

from and different tests of stool, and screening recurrence to year. the our data and sample data capabilities. across monitoring. by strong. commercial this depth at scientific spanned evident This future We presented The Our blood. our including is breadth matched indications in pipeline is cancers pipeline ASCO tissue conferences was DDW The six of types

position to We create our are pipeline and in accordingly. invest a unique value from plan to

moved study of the three confirming current launch at our team test towards high another liver when liver made Americans pipeline the compared superior at the We disease. developing to quarter. for the test. guideline protein during We blood test Our initiatives risk of ASCO several recommended presented million the forward second our progress of the performance cancer

support liver through track our team on cancer to also BLUE-C FDA are and We're our re-initiating our colorectal screening our pivotal X.X next to sales of test. launch gastroenterology blood-based year. We Cologuard trial cancer approval test

last stage supply. with to tests into Cologuard of even the increase level Cologuard. raise data a from happy presence the case because sensitivity stool-based the already leading care data and cost-effective screening We're X.X now we've not DNA maintaining and consistently the specificity and directly control your to pre-cancer Our an primary being established questions. bar Cologuard's similar sensitivity. high will for data while opportunity significant we into primary cancer offered the Cologuard superior confident the entrance. accurate stool for while believe maintaining early is pre-cancerous These goal is on aspiring higher but take Based proved in X.X These by colorectal sensitivity. polyps our cancer cancer We're performance in with shed approach blood market specificity presented also increase higher year showed

Operator

Your Brandon comes of Instructions] question first the with [Operator line Jefferies. Couillard

Brandon Couillard

thanks. as share you any the go? for detail you afternoon. trends I why Good but maybe be understand Jeff, on the to kind reluctant you the any how far exited comments you're through with third of this certainly formerly Hey and some but could July offer how progressed where period or as Cologuard order guidance should quarter

Jeff Elliott

Sure This is Brandon, happy Jeff. to.

talked down previously orders about we really the home during XX%. Cologuard Remember COVID April from the were down, about So state trends states down was and impact where were was shutting implementing brunt that when of measures. April

terms Things impact brunt and April of really was patient both and compliance. to So orders. May down month that recover felt in in low from the on Cologuard point on the of XX% the orders year-over-year started

we Cologuard the month actions to at-home remember growth took in year-on-year With June. the the returned of of and nature we convenient

to this down when returned even today and to volumes two colonoscopy again June. growth, by about growth are Cologuard for colonoscopy were XX% quarter XX%. in a volumes down thirds time is So at slight the

the Cologuard started July Now month year-on-year. in that pace COVID orders about the July of that down with seeing increased recovery that some flat were we're to slow of and growth of has of

Brandon Couillard

trying Great backlog. one for that Maybe initiatives some of thanks colonoscopy focus two where for Kevin. color. the the Between to you you're on capturing

of should platform and the got time we running. think the in think balance of contributions the this contribution up about higher platform Either over second of the quarter year online business, and telehealth those channels those ordering compliance new your how see from telehealth then you in half the business? You've also the rates your and online can core second material actually the do than

Kevin Conroy

think put the Well over We're with initiatives last some all an actions the we even several think all team the proud and of new of about point has we in thanks, at exiting position as actions contributing. Brandon. months the taken these that pandemic are really Cologuard stronger

million $XX advertising year certainly this is television spend increasing to is expect One them of we which and about that awareness. is

for not by is that able start who to then Cologuardtest.com breaking a patient. that, more you We're a seeks time Cologuard we that where interacts that answering but potential physician Certainly making somebody likely that driving out for and several it's that are year and reviews you are over order a of appropriate Some then expect period and questions, out to impactful. to modest to complete with sure website is Cologuard screening. screening growing of to a be

So answers people the hopefully question commercial initiate Cologuardtest.com. see who that television then a or are degree of and compliance that television through of part there we that the that is yes hear by seeing the greater testing

Operator

of question Doug next the your with comes line And Schenkel Cowen.

Doug Schenkel

questions. Good afternoon you for my and thank taking

the I color. appreciate So

is the that, and pacing? also practice practice of July. what in the then we but arguably less editions? you your is get efforts be help How all little although than given different increase at much ordering quite Cologuard important a the this as think those the mean, I how moving finally I to guess additions new improving? doing to new of in past do able then a metric I off the and And like offices volume as environment that's drive going it's have about been quarter I guess trends not know it's doctor's more pace important What sounds you guess did the I'm little building as in this I what does you it I it in into much to you getting matter? still forward? since patients current get direct virtual bit entering metric you're are was past on

Kevin Conroy

will as that less XXX,XXX time. and ordering that it reps the it added our was providers Thanks, today critical. focused on was safety the beginning Embedded is field will the in and on be given Doug. Cologuard more back although largely our than the our back many given able there frequently has much there both of at reps the and access quarter focus telephone is customers remarkable year obviously increased in is it the that whether is more of ordered pandemic the of or which Biba abates. physically of to the engage now customers. first-time number force to the is and field e-detailing users of and That are X,XXX have field representatives get through think new limited with through is We with of the it part our and is and the platform, I There field our physicians through Cologuard during to our other be different a multiple into that ways force field our the in important. pandemic on kind email Yes patience to engaging not avenues the through field and pretty of physicians when we're we're first our that customers get to full does healthcare capacity total our ability thing in number those question field

force to million So confidence Cologuard and is continued to pre-COVID it go is that XX although productivity us unscreened screened. as Cologuard get volumes near a a back pandemic we not Americans great levels of a what those use abates that and will gives be drive able sales are

Doug Schenkel

effectively volume guess Cologuard but regarding a a know I a between don't there there at way from is capacity the do testing, and a just, what in of was then there or impact COVID-XX a will thinking guess -- revenue is better some I this COVID is the standpoint on Cologuard I what you and Kevin on that be related toggle cleanup cap in COVID just for quarter? point? volumes I'm put probably you is Thank Okay. I quick COVID testing recovering gross and there testing can with to follow-up, guess what there's margin

Kevin Conroy

of I've the energizing instruments, most develop to the the XX my COVID a physical in together really develop the ever find Sciences were period, our is to how initially employees then test a results test the our test, do one in that to all rapid support to for is to sure COVID a that safe our could FDA years and of customers own were the to community. up scale space, people test help deliver at required the seen bring make team things submit things and Doug, at came Exact support

communities limit So to exit you this our won't the between to would we goal a more continue provide and really much as like color? two. is that do more toggle to there Jeff to test have to have to the capacity the ability as results our support have. is can and we deliver and and We then we'll help to we business

Jeff Elliott

Doug, volumes really on the margin you relative change relative some your question oncology really quarter about as do was precision to volumes to The It changes gross as to had coming lower driver the gross with the first of margin. in Cologuard mix. in second and quarter. down spoke first decline well

volume oncology a So by slightly or the start to flat mostly or a big third I I quarter look to business. that up business to Cologuard the be the was decline margins offset non-GAAP largely a basis second offset in out improved on is driver. leverage quarter the in as do expect the to precision When gross

X add to million long-term have lab an Recall As of new X we original as capacity. last far million that opened labs. lab have sustain to built for always our approach The capacity annualized Wisconsin we we're when Cologuard fortunate The capacity now taken year had comes tests. Madison we it square expanding does Kevin a in volumes could the million we two as to as We testing footage yet that more. lab XXX in them per annualized. that so offer as possible. soon to do mentioned the second hope COVID in the get Obviously there X right quarter. that to not our could expand now room to Over or from week XX, are up Cologuard

Operator

next with Your comes question Weinstein Brian the William Blair. from of line

Brian Weinstein

thanks taking questions. guys, the for Hey

things bit on California seeing Just are where with just well dig maybe count little there's in impact? northeast Florida, in as you areas and an flattening and cases out to flattening or went Texas, the rising Midwest a that the July in of in really a Is out. less in

Kevin Conroy

don't when want Brian. nationally rise back for here or the pre-COVID is Thanks above volumes are actions were I the Cologuard very April. taken exciting were they look at you for Look, that where different in Yes, granular in too COVID in Yes. the the team are to get to but us level a thing question at which has volumes the April. still at we thanks volumes than scenario is at that now

be is When business to are very the So trends here. there dig you some showing numbers the here resilient. exciting into

fair of that speaks of we higher some ordering the is much you in offices pre-COVID that back Cologuard a again math that still at care at-home Cologuard occasionally, dig volumes and are accurate further primary to what are to are When nationally closed of see level. to of it's are So sporadic the still an closed yet I down seeing there's number down as think nature their you had test. just level some are XX% providers by now orders easily that really XX% Cologuard that previously ordered a

that points are as that will dig data there this by two. pandemic in that we when a over confidence So or abates give our us time adoption exciting really accelerate year some here

Jeff Elliott

which position. in though that and populations seen term. as certainly office of the we July short the an trends Florida their And states California infections large in rate and the impact resurgent quite and has like Cologuard fewer the these for positive trend in have COVID Texas terms into go a important ordering in Again as thing are see to people are Cologuard term underlying long obviously

Brian Weinstein

of the these about comments that faring about better you might gain sales to forward the go the that lot offices. that able physician Thanks we back way on marketing going should you are even and of think that. without appreciate as make you to change in that that about you there that in at the efficiency you think keep a I a How does significant sales How than being thinking for then investments stuff? force you this type that level and how result and at the pre-COVID your of it? colonoscopies answer access be

Kevin Conroy

Brian. Thanks

I'm that the really proud team we is thing as position increase the Another reacted so decreased provide support crisis the initially acted to to the that coming make possible that acted to Jeff intelligent as to reduce the very, the could quickly strongest and very team in saw expenses volumes here of volume color then to quickly team growth. there. can out investments we team be future also started rapidly more very

Jeff Elliott

Cologuard the The recovery to the that driving team relative marketing to speaks this our in I'm this seen to our confident actions investment. that colonoscopy and on Yes. the relative reps broader what's return we've improvement landscape. and are took

term given So off to and the know in XXX longer are the I'm speaks this we of investment test. to it this continue launched market return confident target pay is Americans there time since this who it will has market. over as size I the million positive

Operator

with question comes line de Derik of Bank Bruin And from America. your of next

Derik de Bruin

good afternoon. Hi,

Kevin Conroy

Derik. Hi

Derik de Bruin

be recently tests confusion I'm FIT out kits wondering detailing just all have for some Humana some do think I'm news counter FIT business? against on between that I saw just you're we wondering mean that this that? Hey and tests there was Cologuard test impact and you and could any watching could the if and sending

Kevin Conroy

it still done is frustrating then frequently million Being you insurance health thousand test I back population years handed maybe company tests in things person down and a year. primary said the it's year came later FIT a be infrequently a how about is get head every needs effective, to hundred a they ago remember be effectively and who large practice because back handed can with out the one they XX a going sitting how and out send to care most of by of one out a that unscreened Derik, when back.

screening year one is either way That's need makes Cologuard, a they FIT the more for one three kit helps simply good only the on This and just do a cancer accurate Cologuard test infrastructure also these long years a prompts still So a of the patients but then it saying that effective we the built. reasons customer we've next incredible need their colonoscopy. engine not highlights also aren't step. and to a as that to return value delivers of programmatic patient experience them that that that FIT later Cologuard colon understand a they of very developed test and test kit what that's test or

them program expect re-screened delivering don't get a So engage our that that's occur all that, the are programs here is value life patient's to common not these They're them we with we time. over unique over continue because not really of no, time. experience the and can we're that what one like, of

Derik de Bruin

Great. Thank you.

also business. Just more on you. on of one Can for and I miss in business that. [indiscernible] much a that on U.S. trends the talk you little if contributed and your and precision how paradigm oncology that apologize follow-up on I bit color expectations versus sort just test revenues the it Thank

Jeff Elliott

to Sure answer am Derik. happy that. This I Jeff, is

the May, in business to The bit think relatively precision our in driver and The really for opportunity precision I over quarter, oncology of second of time played business business in have reimbursement a business so there, strong were to business market of performed some growth years time the the through little we really out. the trends really relatively was better So has business a business the started U.S. a way in you're excited and is there the COVID the international platform there's come. increasing Also April international during whereas similar because positive that year for months growth better. large ahead manner of trends not adoption solid decline in-house. a part did out and and perform trends seeing heard large a It's earlier really that. end Paradigm to the international over that have stayed international that material nice U.S. couple underpenetrated COVID a oncology play a is

year initial talked we next sales full launch run with we about his very good experienced plan next that not team this sales later is, and Kevin year sales that expect remarks given this an material to through at force how large pilot to precision As a year point to it's in oncology revenue. the growth a team contributor over

Operator

your And from Citi. Patrick of question next the Donnelly line with comes

Patrick Donnelly

capturing trying back who Are potential that online new am Maybe over that tied Cologuard.com just guys. on large can effectively you Cologuard are obviously to colonoscopy taking shift. able the delaying metrics discern like how Thanks to opportunity. any shifting increasing very patients are or from that. track be to to being colonoscopy guys wondering orders visits I just how you

Kevin Conroy

that can sent can't up direct the it opportunity gives back got point deeper recently of option see do use of It's physician see able and experience XX% that impact a is colonoscopy really to we Thanks, survey Cologuard one Cologuard a they increase will previously Cologuard. future to you next and pretty our over healthcare as the -- you without the and of and infrequently make to that will data significantly, here providers volumes to That just a and the expect these They're force doctors and can more a connection. would The by over in probably of Patrick. option. see that satisfaction important have their non-invasive time testing patients with Cologuard XXX who the clear sending Cologuard this XX% them that their affected are them is ordered colorectal you now expect say play otherwise patients screening our although again what are the of role field cancer who in we with year. driven Cologuard

So part a to colonoscopy shift in Cologuard. be to this of from because has

Patrick Donnelly

a Obviously about not Pfizer one amount, Thanks revenue that COVID. maybe evolve encouraging. then here? decent something from definitely And just that to Kevin. on just was tied the anticipate asked get numbers relationship did it does That's how we

update us general maybe just your So Thank where stands thoughts. in that you.

Kevin Conroy

partnership frequently ago with added and been entered increased We've presently through which for build that environment incentive goals. so discussions that marketing continues least joint our We is some adjust quite to current health this more next providers of We've years campaign. road. the optimize is we capacity the into down the both. continue will awareness two partnership own our partnership Pfizer reached it's that that the Sure. is the time made in decision be new and a decide our of most version to we're whether That not end partnership our and partnership have or has it of providers year and more to that, systems. an here achieved end incredible the We've and of at COVID a through

Operator

Your question the Catherine next comes Baird. Schulte with of line

Catherine Schulte

thanks the questions. guys, for Hey

you've about long-term years the today goals. market to talked by two your First, a share couple of one times COVID Cologuard adoption towards accelerating

to Cologuard trajectory? I mind, do in what by positive start it mean you be a net think that with So does the to

Jeff Elliott

are ordered we well frequently XX still gives million size what is with market is screened. I had us talked be of in Kevin as This that to starting needing really Yes. typically nature target who seeing confidence this convenient Cologuard before about again that Americans the Thanks dabbled are what providers to more speaks the the Jeff. test those million of of home part at who to just is Catherine. really of XXX think Well, as market order and sporadically

increased least by this that the we to as we're trends these this speculate the as pull the I and pleased in we're the site team environment, bringing as am the recovery. actions of seeing the advertisements of telesales to as because So given new adjusted quickly which pockets pleased year two. adapting moved the that and has will guide uncertainties up ahead are this far not but by we for to adoption future COVID given out a the taken, confident with at COVID pleasantly adoption are at and that that that far going pace bringing these TV or with combined surprised or and speed we're telehealth with team

Catherine Schulte

and great there? you've been the comments know opportunity. rescreen in of to what focus big on trended Okay that the been you've able quarter kind how a putting Any make I on progress capturing and

Kevin Conroy

the through to are already patient us target identify Re-screens directly and due that can and when growth the really week well healthcare term. of just part as who quickly that patients there's ordering all button. as for XXX,XXX out has eligible a year the see IT This I verify excited because tools we become and increased eligible, business. say now has information new seeing new us click to patients and three-year is and opportunity team of of order Really an those patient a important this he opportunity are we've are them It's in who provider the long feature allow place rescreen a both year rolled this both who a the the place to allow their a re-screening is their of eligible identify over put that quickly provider rate am three-year the capture for we patients. to material new actions a taken the to

So something will a going the capturing from opportunity driver forward. better identifying this at and getting is and team growth be that it's material

Operator

line question UBS. Brennan your Dan the of comes And with next

Dan Brennan

the order taking both the telehealth. know a quarters accelerate of any optimize between actions to so? forward lot that you you was be that taken taken Thank just of Jeff And telehealth? discuss shift mix couple of it you to how to in or questions. being in how optimized important this mix quarter today use going the was hoping to that the you there angle. possible roughly kind next possibly telehealth think the for need next ability on a Kevin, that will to year I'm Are I adoption? steps and or over further person year dig in do telehealth could wondering are kind in what Is say and for and I discuss the of

Kevin Conroy

Dan. Thanks

the very in of We self-initiated are cycle still through early adoption Cologuardtest.com.

so waiting visits of appreciably ordering office down our the and for So a that that us me process of levels future. physician excitement let Cologuard towards the clearly remind gives to the a heavily and testing probably is for at number XX% is pre-COVID normal back you than more the a test very be

terms component strategy. In broader a of this telehealth, of is one

So it. part for of patients to self-initiate is one

a it able Another be wherever order Cologuard that is want part of in is telehealth encounter to them with electronically. we doctor is a engaging a where to patient

or the within the virtual the next environment Cologuard occurs will of and or this a there embedded as patient rollout a visit electronic the So upgrade of Epic across visit year ordering can as Epic towards and telehealth know Epic and end be be country. you

to that this through provides then it opportunity plug and effort and is comments powerful as invested payoff we over year, is million differentiates in that is years up think in unique for XX capability. very next So one have physicians X something and for in look It our his multi-faceted we that that and occur patients and IT that. we one also test said to earlier sets going us Jeff and a years a us forward $XXX to us pipeline over same a the

Dan Brennan

Thanks that context. on trying back the to to one Kevin comment in being just I'm just and orders put maybe normal. Great. about

might our tests we normal Is the as pre-COVID. So I comment we forecasting look had that that going nearly think point as was just you jumping think about as about how forward; we about by going that forward. XQ back completed utilize and we're go to off what in to like XXX,XXX that map trying to that think implies

Jeff Elliott

the in level. I about base that Cologuard in Cologuard change are that mind is that given and about grew slightly that's of This Jeff. back their I orders Two We've they're a year. in orders. up Keep on one flat. July gave, mentioned Dan. year-over-year orders orders commentary also loose to in against was June Sure pre-COVID were the comments through

expect Now year-over-year, growth. would we typically

are decline with due the their before COVID big had Sales to place I very full impact from is put There the forces initiatives like access in headed. the and field are impact. we've in but out back largely is So telehealth this still things normal of some say a normalized. wouldn't have totally things in physician visits office

Operator

question next line to comes of Stifel. Dan Your with Arias

Dan Arias

of on track Kevin with Good and which things Blue-C. back you. that what to afternoon you're studies the amount recovery of you other Thank guys. speak for then you're in just where the might mentioned savings part cost versus the a the you're the and just Can savings that you now that reinvesting you in Jeff on you're is turning that on targeting back business? be as mentioned shelf what plan the plan the still given R&D back

Kevin Conroy

significant is trial laid a off is which Blue-C in the in we'll test. We're and we a those for chose and based of confident a reminder of out had year. so blood a and test that blood again this that Blue-c to for stool-based test. normal both X.X enrollment the the are screening now starting in we the that to kicking to and showing think colonoscopies again screening for and sites the So near an term be re-engaging based because We occur pause Blue-C is Cologuard colonoscopies in decline interest and are by study back end timeline

IT late infrastructure suffice those our is at in Our like studies later go affairs other clinical tests. launch accelerating. is studies study slew and some that together our commercial reengaged that allow lab and team it pipeline day our infrastructure of additional a say can happily into coupled to with liver us to We

about. to the put in capital On we We sure that we place recall think investments is and In I means business the the heightened that we during it's infrastructure. term to given the back because than building reduction a the of this that's right in make for do bringing and long long and our the solid could that uncertainty. pandemic. in Well, the Kevin talked the nimble stay back from program, for is We putting that reinvest safe business to here sales be we as value the field period quarter that as second force preserve wanted to our to drive in to expected big studies would why the so, force quarter, make sales way the bright April third spending faster the driving priority back changes do thing growth the back, term. recovered the appropriate restarting it's think

consider we're These volumes are hiring we we've is and when our significant. expect combination labs Cologuard. testing think So of growth support through R&D than COVID and the when do now higher also volumes in the to done step the putting ever you to up continued very you about before this

So hire continue we to to have to growth. support that

Dan Arias

our were if the what math around on? Okay that million we the our about math model model number so you but now that talked had basically we would be XXX should base

Kevin Conroy

the provide much. It do we has not however. in on recovered will I considerably Yes. expect to than sequential going Apex how Dan, expected. uptick update the because we're I'm guidance going number. business less to that not faster be far

Dan Arias

had the of half and get the how Okay way them assumption the and population? guys math getting point think things I think just then does and expectations given rescreening follow-up XX% have that the can opportunity evolved? was I just question as of Do reaching you compliance talked the on then about sound an there. you at this XX% that that mean, you still that

Kevin Conroy

to our know we're Yes, provider live, a so they Dan over longer due Look revenue as years is many time this that we've tested over possible screened and engine that we engine they're know we kind recurring of see three term eventually for screening we is do where given becomes get the million position these these when goal half patients patients ago, revenue. of saw over a X unique at to-date they revenue least becomes patients of who who to and in which know, we as goal. are, know that that they our

right, So least more than we this hopefully get capture at XX% our that. and I goal think will is to

Operator

of Your comes Kevin DeGeeter line next Oppenheimer. the with question

Kevin DeGeeter

or yes Hey regard taking these further positive to With question. either due can for mammography in oncology, thanks I for DX Oncotype my based guess diagnosis to come self-examination. precision women screening

really screening reduction to in the we're in consistent which is the I a seeing of my drive is reduction diagnosis of volumes. reduction what I we're these So the the going with mammographies, women for magnitude is seeing think magnitude is, Oncotype guess question actual

Kevin Conroy

Kevin. thanks Well,

and about opportunity. so and excited oncology are business We our team precision

visit chemotherapy so for frame DX physician the patient women to self-exam helps a the April guide that diagnosed that a patients is has will screening and been are, push and and this cancer and and this how now [indiscernible] number Oncotype and a benefit stage answer keeping and are significant; in in in strong you the decrease There just recent frame whether that that a significant even about is of from no stage based greater awareness go cancer chemotherapy then the temporary of June frame mammograms a had saw April, yes that that So on that XX% a uptick time early early with mammographies. has coupled screening and negative avoid certainly business country first in breast the May impact. question can that that's time in a

pandemic and adoption was I short-term saw those the also the case to increase Oncotype dramatic a XX% what treatment. market in a test think recommend in a we potentially a right the patient and a more about more increase that billion urologists after of prostate with large saw that hit molecular do DX thing number saw treatment of breast is of we prostate an aggressiveness because the impact and and note decrease tests U.S. oncologists market the the tests a to ultimately tests test, this what and $X.X helps surgical avoid this here is is aggressive

an very targeted it about we time a with test right and this result that going faster we person three it metastatic excited test and believe the our part PCDX adoption. delivers is the So four is days of drive important today and XX future business today force, that and be sales a nearly oncology in test cancer and with long then helps the guide will term chemotherapy is XXX to a than turnaround tests but to urology the sales people are about DX person small force, precision does is other what for which Oncotype awfully

Kevin DeGeeter

All right. Thanks question. taking for my

Operator

Canaccord Max And Masucci your comes question of with the next line Genuity.

Max Masucci

taking for questions. thanks the Hi,

of to So capacity supply scale policies see in a ahead health below testing and responders. first U.S. demand evident especially addition we're starting for is care providers wider traditional COVID to asymptomatic testing the COVID-XX you capacity so just of individuals are test that the XXX just use that It's XX% thinking in you under and tests per your the QX. of of how math week, at COVID-XX of and duration about processing COVID-XX testing suggest XX, think opportunity would I

or So from that's higher people going barriers utilizing a any whether you are capacity preventing there percentage technology it's forward? of that

Kevin Conroy

do expect over should you our have. We increase the March incredible was ability and and that That's our time will we're able deliver have capacity outside part technology pipeline to underlying to we needed infrastructure be platform really to first it the as shows R&D that areas know country and business had really about home though our community cancer, from March on to our value we XX testing delivered platform and We what the then state we to the we the we speaks capacity. that call cancer, since XX. it to the on group and an the deliver and cancer first able to an take is week, our here. all Capacity is is the telephone with our tests think do hope help and we long we in has that not science and up and that regulatory truth We a testing a that term. business want be scaled and that to pancreatic scientific of test team per this on the ever includes exceed it XX,XXX liver esophageal COVID that

Max Masucci

XX this to you and with stand commercial any parts quarter Great for payers. Cologuard XX group but age of are to with Clinicians continue you of and this then you lots traction of seeing may the group willingness just ordering. moving for engage where in age sort conversations age order to what

Jeff Elliott

target Max, almost market. There is Americans exciting who this in that is Jeff. XX to million XX opportunity. XX are is an

seen and that's it to evidence that the a there for to lifestyle opportunity, Cologuard addressable So total percent me that fits is up tick orders considering very year the well no XX the surprise have Cologuard we clinical significant a into XX as is strong. busy and very old increase of

the in about mortality XX% we've Over in group. and a XX years increase that past seen the incidence age rate

for to group, So to reason we improve think that Cologuard a that group. reimbursement clinically age age in adopt there's strong continues

greater to on for expect group. inclusion next higher I think hinges in given the big continues on reimbursement reimbursement work value through team we driving likely guideline leg Cologuard is the the of over that the that proposition strong age growth

Operator

line of Evercore Sergott Your next question with ISI. comes Luke

Luke Sergott

the Thanks question. guys. for Hey taking

getting mean here of Just it's getting oncotype. you I the the different quick Any on the than guys a so one test typical I logistics Cologuard chance on to way testing, realized your COVID behind these on that Cologuard it, are access the COVID to wouldn't than Oncotype. so previously the Cologuard an opportunity that more been able channels prevent legacy new that to obviously testing with patients on to new access have for oncotype channels,

Kevin Conroy

well benefits We've strengthened for have one our a over matter largest healthcare Yes, Cologuard of systems launch has that and for came our we all time. over had providers laboratorians the set both of our between that and new COVID with that benefits relationship health in together and that's relationships a interfaces allow strengthened weeks. Cologuard electronic that over a will and time. with the our deepened our DX and we've the great scientists lab probably dozen testing been teams Epic showing help been will and test benefit ordering of and in ourselves up to Oncotype that and Again exact have to is

jumping launched is COVID the tests going the this ecosystem the over in an see so years terms able And five productivity think infrastructure people next most test bit testing forward. in next time, I important amount to our through at the be that of think care ability to launch new system, that's are you'll and the I incredible of health ecosystem and the are to of takeaway -- helping health

Luke Sergott

I Okay caught the the lag you succession earlier. in I one and here any rate the and any rates. changes last change if order on are between then actual great guess seeing compliance know that don't in I thanks. test And

Kevin Conroy

a the back compliance rate about way XX is the quarter report this XX to we basis on typical Look it. was months Cologuard leg in that's remember looking the XX%

the far above since done that. of frame time a XX% be the As to turnaround March/April days as impacted we'll COVID then completed I'm do was that negatively to early Over and was I during the that test confident rate question time order goal in from largely back have time compliance to is really able get think things our recovered.

Operator

last line your The to question comes of Jackson Bruce And Benchmark. with

Bruce Jackson

you other right for back us care circle remind health doctors taking I to my electronically question. and percentage now the are about the you becoming systems? wanted integrated to thank I'm order Can any of electronic Hi Cologuard thinking what ordering. of electronic with you

Jeff Elliott

time orders electronically fax a easier when return provider submitted orders at So orders actually easier clean. higher she because it's we to each an cost an a Bruce, electronically are about come this is Jeff. it process. of Today rate Cologuard than the over it do and in via XX% because ordering money data it's It's back for and us ordering process us less result that XX%

Kevin looking the Epic forward to later. conversion we're mentioned So that

systems for cloud-based with will it systems. all Cologuard the that like and them. been too of with We integrate the health are over integrated one will big early time product just on today Cloud-based is all and we Athena we've Health. with integrated some too we with integrate important electronic other make sure

So it time. will take

the is higher. precision rate electronic On oncology the side, ordering significantly

forward providers. of that deepening systems that of So there one shows benefits Kevin path mentioned and relationships is our with a health the COVID is and testing

start COVID electronic For ordering from well very has rate the been the of XX% it's ordering. north electronic testing, high. Today

that one So think will COVID is go over there electronic ordering benefits rate that of Cologuard help are higher time. and other the order testing we

Bruce Jackson

very All you much. right. Thanks Thank great.

Kevin Conroy

I will over to presenters it now back any for remarks. welcome. turn our closing You're

Kevin Conroy

path of give review thanks to face us deep Cologuard results incredible many their expected way team to commitment to XX% in quarter believe across positioned market and oncology us to for continuum. are Thank to our screening grow second great challenges reach to pipeline confidence you well than mission. with joining quicker the due patients of of tests we in unwavering employees the our the and forward. We crisis recovery this cancer offerings continue sooner, and our The more use reacted to especially COVID our to all for our you. infrastructure the cancer colorectal to Cologuard precision and the bring Thank the

Operator

Ladies and today's and conference concludes you Thank call. for disconnect. participating you this may gentlemen now

Exact Sciences (EXAS) 30 Jul 202020 Q2 Earnings call transcript