EXAS - Earnings call transcript Q4 2020 | Exact Sciences Corporation

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Operator

Ladies and gentlemen, thank you for standing by, and welcome to the Exact Sciences Corporation Fourth Quarter 2020 Earnings Call. [Operator Instructions] Please be advised that today’s conference is being recorded. [Operator Instructions] I would now like to hand the conference over to your speaker, Mr. Erik Holznecht. Thank you. sir. ahead, go Please

Erik Holznecht

and Sciences of call. fourth Kathy, us for for Exact quarter thank you, you all joining Thank XXXX conference

the quarter our are website Kevin CEO; are release today’s earlier Sciences call presentation company’s detailing news This On and our at news afternoon Chairman and fourth 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. Chairman pleasure Conroy. my descriptions website. results filings, Exact different actual be available the can and introduce SEC such CEO, to Kevin our with the both Reconciliation our materially It are Sciences be figures is in of in through company’s are and associated now to release GAAP uncertainties our included earnings and accessed

Kevin Conroy

Thanks, Erik.

our patient cancer. Megan Paradigm twin on advance with we and advanced Exact strengthened foundation. pandemic, these the plan Biomics Base had We’ll billion. of into of by confident are leading Thrive, adding including to our DX how strengths, transform largest and Genomics, more minimum than resilience evolved long-term Friday, tested and generated our tests a test we across in broadest and liquid announce Investor Backed We We continuum, to of Exact eradicate Oncotype continued opportunities thrilled R&D and of talk mission this represents congratulate total future Relations her leadership Megan in Jones, tests, total billion most of opportunity company the Last in girls cancer $XX people Sciences multi-cancer today combined We year, diagnostics we’re extend our a the our addressing Because on great all nearly and about Head Sciences’ Cumulatively, our menu relationships throughout the family. teams Cologuard, screening by team’s the in revenue. news. cancer $X.X impact in and and our growth capabilities husband diagnostics. healthy throughout to capabilities, cancer tests. residual to the that to million biopsy we we’ve this our Chris, disease, the X

scientific cancer places leading people, and Our platform tests the at of and medicine. forefront earlier precision detection

review Our our Elliott financials. now CFO, will Jeff

Jeff Elliott

our a $X.X billion. $X.X and of year-end full Thanks, was in TARDIS acquired GAAP profit leverage was margin model G&A sequentially expense Base gross was X afternoon. revenue factoring On since by oncology XXX,XXX Thrive We the nearly This our demonstrates million. have Kevin. impacted the ordered driven million. $XX expense expense margin was R&D quarter loss COVID generating rules, bringing with basis Biocartis January cash Genomics and on accounting our EBITDA relevant Fourth balance amount of $XXX revenue rather million margin, and $XXX Net Precision expensed forma was was revenue million, our million. of securities volume gross precision testing million, quarter was $XXX the XX%. the $XXX expense $XXX amortization X,XXX was healthcare $XXX oncology. capitalized, quarter Sales $XX was R&D Fourth in Cologuard the year growth. gross was launch. excludes with potential a ordered consistent this the and Genomics X% intangibles, and agreement. $XX million guidance. of was impact the and of volume billion. million. Good foundation. to marketing to excluding termination pro the Adjusted was $XXX business on the acquisition. Base also Screening Based new ended XX%. $XXX the providers which robustness increase than license, cash acquisition million, points, million Cologuard $XX quarter related Non-GAAP during revenue was increased million. of was Non-GAAP screening including million. the acquisition by

to Turning are uncertainties, revenue formal XXXX not Due to we guidance. COVID providing outlook. our

We to and expect because to XXXX, January between screening order Cologuard seasonal a first lower revenue screening is completed the a revenue care sequentially. of down revenue in first test. In lag the impacts quarter because decline was quarter This Primary sequentially in normal due screening quarter, of X% typical utilization December trends. early the and holidays. first

that now end decline the year through slightly off sequential expect is in January because COVID lasted and the miserably. of spike tapering We to be year more this

growth a As drivers widely COVID positive growth vaccine available take and hold. as the XXXX, for more other result, outlook we have a becomes

precision modest to to diagnosis growth as see the first cancer we expect For breast recover. sequential in quarter oncology, continued

about done COVID expect approximately the State from COVID decline sequentially our Year-to-date, testing on XX% COVID peak the nearly to to our further continue as needed its in testing our testing COVID to Based employees where testing to of of down cases $XX revenue. We revenue trends we forward. quarter. COVID COVID testing be going in in expect decreased COVID and offering communities. cases, volume is help million down plan revenue support from in XX%. recent we’ve are We first and most has Wisconsin,

for potential given we our in growth, year, long-term in to pipeline. Oncotype plan and our This of OpEx. outlook our the and to investment Cologuard Moving confidence increase the

starts the for $XXX and This expense campaign a a $XXX For XX million. the million year, to sales XX reach of marketing expect to group the expanded of we advertising includes full Cologuard women’s with to We’ve year. and addition age activity so this fields increases, the the to team. partnership as Pfizer’s normalize partnership of our sales activity Due half field fees. first nature sales in Pfizer the of field will to also health assumed

million multiple headcount we include the growth, projects For considering support before G&A, $XXX $XXX and costs. Thrive expect to integration to million IT Investments acquisition.

blood TARDIS license. related includes R&D to our multi-cancer the million expect support we to colon including $XXX $XX million, R&D, roughly our For to $XXX investments test. cancer million and

amortization million intangible expect I back $XX now around around for turn million. to CapEx to call will and the $XXX we expect We be Kevin.

Kevin Conroy

Jeff. Thanks,

it the to suffering is mission eradicate causes. and cancer Our

to patients are tests working science to and adaptable of Achieving to life-changing great every step scientists. accurate with teams recurrence support menu to cancer Our platform complete tests. We a screening and end end and monitoring. had this physicians starts at bring an from to

Our the matched and depth sales by capabilities. scientific breadth platform is of our and marketing

in in We commercial have systems. X,XXX relationships members with organization global than team specialties health five spanning more deep large our

lab colon XX, systems test be been we trend nearly Our including alarming supported for has million opportunity to long-term and by eligible diagnostics earlier younger drivers, there growth mid-XX’s, will provider to and Each have been valuable people a XX insights allowing most screened. an Americans rise of to and several of in physicians. unrivaled customer develop this Cologuard new has XX% adults end XX, there cancer cancer experience, patient impact end IT seamless be the us to Since positively age and foundation. are deliver the in and exciting incidents. XX screen than colon a an never in cancer them patients

finalized the showing we their draft XX, a we Task United to to of specificity by data month Preventive be the screening shared lowering Last recommended of Services States year. As which middle positive in XX. this very age prospective patients false combined false Force means Cologuard’s that positive it guidelines age expect the issued the was result very this, group. X% That was to XX% only group. This of for suited nature low to at-home with rate rate screen this Cologuard XX age age makes well convenient over

Aetna for accurate excited prefer to non-invasive we’re guidelines, finalized health step follow direction the option. Cologuard typically the in so. as covering is who plan started week see do screening XX, payers joining commercial an age to right While This Humana major last patients other that a at

marketing choice. in have place importance comprehensive an emphasize raises of and specific their getting is test Cologuard colon Cologuard. sensitive number highly and to make expanding plan cancer earlier opportunity screening. growth We a the innovative and one the accuracy and X.X to Cologuard bar the screened in

cancer Cologuard least and by goals are to decrease X.X positives XX%. at increase pre-cancer Our with false sensitivity maintain sensitivity,

and improve per goods cost by enhancements to to these X% expect We of test. revenue XX%

developing get patients blood also cancer for another to option provide colon We’re test a to screened.

screening XXX believe FDA over patient will in Cologuard one stool the us in colon for Blue-C fit an and These support than cancer We test, three trial. our our X.X our performance and blood and leadership incredibly XX,XXX The is cancer. with test, blood high allowing progressing is collect to for weapon all more patients. long-term. Our quality enrolling will test. colon war in will impactful to the of prospective on for both goal Blue-C, blood deepen a be screening multi-cancer cancer trial compare our approval Cologuard study sites programs

early provide the make our We test physicians. combining regulatory experience multiple talented teams. patients to IT, to leverage scientists our of best we to We cancer We’ll Thrive and from We detection a us to with powerful plan colon on screening approach believe marketing, Sciences’ through care available and leaders screening primary will are test team our approach capabilities lab, of as once. at expand solution join and multi-cancer thrilled screening to patients. the focused Thrive’s have mutation a customer and to methylation from sales offer power Exact cancers

to brand, With The high disease, foundation and we precision we on residual minimum engine. generation cash team Our generates therapy can margin a also revenue Oncotype and test powerful world-class oncologists, evidence is Oncotype a flow and deep strength DX relationships we international with tests. an selection. build have as DX, future into oncology expand monitoring recurrence unmatched support durable,

we’ve based development our disease to to including Analytics agreed sequencing oncology tests. to portfolio, and acquire Ashion the minimum help thrilled announce, We’re residual accelerate of other

CLIA accredited Phoenix, is lab certified based in CAP sequencing Ashion Arizona. and a

support of and one to breadth provides the to of cancer sequencing Ashion across developed match whole continuum. innovative GEM transcriptome available comprehensive and efforts access knowledge exome, our germline ExTra, most will diagnostics genomic capabilities. develop the tests This

Genomics licensed small detect out TARDIS of team high as residual born in talented highly help lead quality team, disease or added TGen us sensitive Translational lab Ashion instrumental precision The can recently oncology. we’ve a TARDIS With in that will capabilities testing. approach be blood. to Research our specific at tumor advancing Institute and minimum TARDIS was technology. a Ashion patient DNA very amounts is was of Ashion, unique for in

transformed Hopkins mission and We Clinic of Johns national announced Hope. TGen Base suffering is Thrive, compliments plans earlier past of pipeline cancer University, decrease City are our of Ashion, will cancer in City of our significantly and now better well-positioned institute our in the enhance for years to can eradicating Hope the continuum, collaboration of fulfill the commercial menu light also capabilities for changing Genomics, with cancer us detecting allow center. a This treatment We our expertise of Mayo positioning bringing cancer and designated and continued cancer diagnostics. and we need. and to Biomics to XX-year end to By established come. Exact comprehensive lab, complete collaboration, Sciences it enhanced to Paradigm research us infrastructure along the costs. in with end relationships a and R&D to outcomes causes. capabilities patients quality deliberate add across deep acquisitions The our tests cancer improve high drastically of and These IT year

to now We’re your happy questions. take

Operator

ISI. Instructions] [Operator Vijay Kumar Evercore is first your from And question from

Vijay Kumar

if we look Hey reluctance I comps what annual level one. guidance, thanks guess, understand with easier Maybe saw looking high comps – the question. last I’ll QX, for guys, the the guide. perhaps QX. perhaps But I worst here a taking X% year, at start my the the in down sequential, I’m of The

I’m revenues, $XXX-ish screening in around curious because to the $XXX-ish streets implies math looks are So guys guiding you million just million. like

here revenues. sequential screening the So on I’m comments curious on

Jeff Elliott

with start I’ll that. Vijay, Yes.

So I’ve it on to the years. in the really the future said guidance, this forward, it’s of for I’ll mind holidays. here, to keep important impact say

test. QX in screening on a that’s between all about our We day For expect this QX, QX order holidays and a the business, and revenue the lag because There’s travel of the weather that test. of should below recognize winter affects more. timing Cologuard business, an completed completed impact a and us and XX although around you

holidays impact year-end we of more felt this the COVID in so business and that so had in is on the that And spikes QX.

here. meaningfully. coming counts When at in So count case all down case in happened that’s Wisconsin and the now the both look are nationally, you that’s

coming the the So have to of optimism the At XX, expect you growth which reason same billion of market rest drivers with we there’s $X mid-year. a time, year. lot the addressable ahead a guideline for three-year we opportunity. update look Cologuard The as coming material rescreen on on is

see of number the $XXX ordering to we driver from this that of half grows of so of over and that, in rescreening is year back from major We this expect expect revenue million year. there. the a more On electronic growth top

a to There’s and there’s here right Americans enormous. lot million optimism be is for So XX screened now. this of longer-term reason market who need

been to and the for this never in Cologuard. the QX seasonal from related really growth we’ve The just confident of commentary So more impact holidays transitory outlook is COVID. impact

Kevin Conroy

that Vijay, Throughout move me that. start let screening belief stated if at-home actually our COVID towards more And to add people XXXX, to a look we take a at wellness you would method. our up XX%, off. maybe X% field And up significantly QX, appreciably, Cologuard And was XX% utilization visits screening was by colonoscopy even was year-over-year. though were off team access to noninvasive down

this paradigm screening Jeff starting address tells this pulling the to occur, So we in highlighted. those us is other screening to to additional Cologuard colon drivers plus of that that trend and gap that change that cancer see big forward

Vijay Kumar

know now clinical guess, I data a year? I is under Blue-C done will you sensitivity timing question. what And related sense be one, in but so will. mention follow-up it’s Kevin, blood-based point your the blood look two-part based expected guess, you What Is the the there like guess, XX%. know should some I on where two side, I And on the tests, results at trials of CMS well, What if didn’t given out? test, a that, It’s side. my I to on Blue-C, see has guess then study? different just it XX% for Cologuard is, for pan-cancer the Thanks. plus test? this asked trial, the it’s I validation the

Kevin Conroy

take try So I’ll to each those turn. of in questions

to relates focused Thrive. multi-cancer seek, it as that and combining Exact best developing the by additional capabilities we’re our first cancer all, of test test First of with on

elements, believe the mutation while improve protein So will specificity approach, we the methylation approach Exact Thrive sensitivity and holding important. relatively That’s plus the constant.

the focused is on. what team that’s So

additional to FDA pivotal conducting approval occur support data are studies the we we’ll year. approach. Now, year. the that And this second then And be forums as know, path. able we’ll that’s in you to validate to we launch next to let half present in most expect to scientific next the study That’s likely

be was Was expect on study. I is a internally the setting. for third of we did And Or no overall you Second blood-based equal of would We event of cancers. in But today. test to to meet those? question than as to around And guarantees for course, the that sensitivity. have that course, into that with prospective get colon a any there is blood-based The challenge, able in are Vijay? question prospective proof believe the cancer. our to data The minimum looking or performance is be for one that CMS We our sensitivity testing have detect better part rare there approach move of both of a study. XX% markers. we that stage with anybody based using there methylation will embedded

Vijay Kumar

that you I’ll back taking questions. appreciate step Kevin. line. I the in No, you my did

Kevin Conroy

Thank you.

Operator

next The Arias from Stifel. from Dan question is

Dan Arias

that Good the some Yes. There guys. a about some colorectal adenoma in liquid on just was into Kevin, Hi of go afternoon, data assay I’m detection. presented thinking January for Freenom by proper cancer. things

for also you polyps in there where see about maybe the capabilities. mid-XXs initial thoughts X.X So bar saw, the Cologuard? and the context think headed detection on of for that the you curious I’m your just and adenoma you that sensitivity data polyp is detection, latest for or just But

Kevin Conroy

pre-cancerous not prospective prospective who’s a to I that normally the truly participating sense of study use the word. detect that be would this study remains one that was seen space that polyps Well, study to in ability anybody in for think a

be And so there’s to test going there. bar the fit sets the

sea there So directly saw is our prospective And the just a are prospective was about study, in the deep study We data for to size you tests a of much case proportional test test advanced the study what did on the studies. in in test advanced in smaller know XX% And that we which than a fit see adenomas. is of adenomas. original the blood-based sensitivity isn’t do stool adenomas setting. our control those polyps, advanced that

equivalent just with part, So and the it’s physicians. of test And sufficient is the be to challenges to $XX effort you is. the that a you performance remains test it the of of would is, I to see samples to if really market, test. patients address to test. to basically seen see have the performance get have and a intent blood-based large best fit the so test delivering going requires But to test, surprised fit to to because what displace we’re number equivalent be what in Lots fit to fit test. cost because sensitivity then hard a very be of to on the this fit equivalent a if

Dan Arias

technologies Okay. If line could Very given mean, there, are the should and customized strategy quickly Thanks. just the together there and assay things MRD of it is assay. about you’ll What here, on of the then assay I offer more to stick we that the of blood-based be questioning with how market coming just I market an is of off-the-shelf are assay, I know the or kind touch with evolving. but there? still type evolving be a thinking helpful. is coming to timeline commercialization

Kevin Conroy

the configuration, better talk the MRD product in our performance With about product to a in coming position assay, we’ll the be quarters.

our we have example we in sample patient’s just to and journey. collections and the do already Ashion And are can we And position team TARDIS and that We one testing, of technology. early-stage the fat as that clinical of underway. things with as this starting we tremendously combine and sample because mentioned, acquisition that tissue point we believe that specific robust And breast oncologists. that have to a license, to trials with have the connection cancer able we’re platform for market-leading leverage is leading in a sensitive

patients at highest know We of the also recurrence. are which risk

more about are of the excited beyond. in really into details colon our in opportunity quarters. So with and We’ll collaborators coming and expand space, work to the and get some then us breast the the timelines

Operator

from The Derik of Bruin is next from America. question Bank de

Derik de Bruin

afternoon. Good

took my Dan just So question. MRD

So let think something get – of me let here. me quick

a talk this guess, the little I believe. still can ethics? liver of track some I year, I is bit on for about we So mean, other

Kevin Conroy

make first It test this We’ll available is. liver our of in the half year.

We’re excited about that. very

have a customers we forces, So one in built and of our health field diagnostics, systems, lot things there’s about a talk with forces of I don’t think to second. sales close the we leading

so number now CancerSEEK Cologuard talk liver DX, to And them Oncotype tests. to the a MRD, to with things of we to just and have about from

is So we at the impact were can critical. excited about we have health system which the level, that

Derik de Bruin

there of on of be are just are targeting on the a there? competition the bit you more that’s some So a number that based how Can market. differentiated the you’re data some little out from companies liver of specific

Jeff Elliott

U.S. the liver Jeff. That’s those of is risk market happens. liver the the that disease this are cirrhosis plus B that’s Derik, Well, you the means liver of Sure. – approaching those typically portion all because at That hepatitis people. we and million high XX% of test X are with where in where disease. that’s is that

deep this the come here this are as care, about, differentiator today, get play tested all because in here goal and Kevin tested save bring So liver broad one is primary more testing market, we of helps in talked than with GIS, to that the systems, platform, The health know that lives. three is of we’ve the this disease. will into fewer people relationships people got we

for recurrence, developing We tests have therapy test selection. we also downstream or a for

clinical So important adoption, getting tests at of differentiated is have that securing good our end-to-end guidelines. for relationships. reimbursement, That’s top the and the platform very we think an deep with very, evidence. getting On that, so are generating in I we test and end-to-end suite launched, the of early team

we that liver other love and new to we’re tests how I market. So bring positioned for tests

Derik de Bruin

in on should the growth the modest Great. And for sneak quarter. in think you full portfolio, can I final that Oncotype if about one year? How said we first one the

Kevin Conroy

tied seen diagnosis. diagnosis drivers Derik, Not those back, ways COVID, in by down things last well near getting We’ve QX. you’ve mammography very year, back diagnosis come and April a term but cancer business are impacted to this really obviously XX%. were come with seen come relative are to But perform long in breast cancer see We that do back they they’ve volumes back. QX,

has it our So business. too

we the Over rest improve to growth back they as the to expect of course the of year, the come way.

there, side prostate diagnoses done cancer the On prostate more. are

very came year that tests with this that so but node strong is a And business And late The the evidence study helping behind very, business. these that positive incredibly impacted, up open now out more strong. is to market. the is are responder last

to year. seeing move around We’re geographies next year far as reimbursement, as this the especially as and starts into world growth, help exit we which will

Derik de Bruin

Great. Thank you very much.

Operator

You a Doug have Cowen. Schenkel from from question

Doug Schenkel

I thank a want guess just kind want my taking questions. I or one Good I questions. development of afternoon, you start product ask, and to pipeline on of and guidance couple then to of what for

guidance, about the walked sense screening people seasonality that but traveling through dynamic the of makes guidance said, earlier weren’t want I as on about about be really in The XXXX, holidays. you’ve mean, clear. of and it past, Cologuard that So couple we times, on Jeff, think to you’ve much and I has been a just this QX touched asking and first talked for as

to that would December. seem talked we’ve dynamic that always So suppress holiday about in that

and the cap I question. to for again. talked down capacity one just at now is rates as about still need positivity are come to guys screening you ups, other think starting least response Colonoscopy constrained in there’s

in that targets? to for way year right pattern, these of Is be upside that I account the with like, which to kind think to but seasonal just about could you you relative mentioned mentioned it? all things clear, room regular a a leaving result simply guiding the are So is upside to this that regular for

Jeff Elliott

given seasonal X% we want last with this the mentioned point lose during QX, guidance still to give lose of QX, bit on least week you trend, yes, expect different week on very you it clear versus To and as I The QX visits. biggest saw a dynamic QX similar perhaps the more Doug, we here. trend. in dynamics is year Well. year a because down Year’s we holidays, going COVID. because your for that the during New what in at weren’t but people a people the traveling in holidays aren’t wellness much, Christmas,

So down wellness can closely volumes visit talked we XX%. least before volumes, which track at are down colonoscopy meaningfully. Kevin

catch-up So well we a are the happening. this people million seeing the There’s backlog, in over backlog. still

ahead. to same to time hold. year, like million, The $X that we’ve revenue guidance again, say about $XX new that major at that pulled the would unlock new drivers starting from million. This million where million next really are you’ve being billion that $XX were we’re and we time growth over as of about pulling midyear help This Kevin and Cologuard take year Things growth given we year to this update expect, We X% ahead that course sets year-on-year are opportunity. this saw for is the of talked these capture of capturing with year That’s we Cologuard should down market year over that. this beyond talked $XX talked backlog I $XX and starting in all stage the really expect got we’ve growth. least Cologuard a colonoscopies an we’re and this why they exciting about

million far year from So spent next Electronic this then And lastly, there’s biggest for a before even ordering, to and the orders bigger mentioned opportunities converting $XXX year to as rescreening in over there. we expect long as history, rescreening ways the company’s I revenue ordering. electronic the we us grow a of fax year.

wanted color I a expect to what to little make QX. on in sure So give I

some some different it forgotten their when And the call. spike in COVID companies Cologuard, for quarter after in think obviously third last factored because of that happened I folks, big then how which that October our after XX-day a because plays the some is hadn’t in holiday they think I bit update that folks, call, lag. dynamic than models

Doug Schenkel

all to assay, this then tissue and it make just I seen you mind with as where U.S. existing you up know about that And you’re and piggyback others LCDs It’s able appreciate set some It’s there the you QX normally model to would helpful, expectations as do would the and wouldn’t trying expect any that’s a there’s liquid, launches Dan pattern. and kind not it’s is the designing sure, super it, Jeff. somewhat hand that then and lot but to with all then asked to guidance positive on things typical pattern is for be mentioned. you things, both we’ve that. want so international guess it whole reason earlier, design in like, markets seems first captures offerings. markets, how clear MAP. so the guess well early No, those we those other of time. trying by be give and as admittedly this can decentralized are you couple, evolves curious just I in describing get you. on depending positioned a mentioned the to I’m asset starting Oncotype you’re I’m on a how really those just better that just Thank you QX over I way were to MAP reflects but it. Oncotype just both about sure Thank acquisition exciting. I’m this centralized understood. it’s then And more new if you’re market address out clean balance on And – all figure to I on way I motivated to QX just to as I that that to on details again, to is their pipeline a learn just And know I it desire and sounds questions? the one Ashion,

Kevin Conroy

oncology first? approach and It by liquid to of both foundation of take reduces which and through false curation introns. a And very as able cancer be primarily GEM germline to now in complimentary The academic quality, it the sales and that Ashion tremendously important of has We��ll reimbursement XX,XXX both It the Phoenix, also panel It evidence about approach its X it centers the physical to be to It note – used ExTra for bioinformatics genes in that’s MRD. serves It’s offer basis. team differentiated automated Ashion of has for today. more Why labs robust because positives of terms panel with precision Oncotype in and interpretation. happened its that also building provide mauled these that’s MAP. don’t same panel a And is nearly terms we and research. can allows Arizona. are XXX powerful. this which a software, first then in has that it’s subtraction, our tissue the is

helpful. that’s So

As just We to we that MRD, announced just we acquiring the licensed will TARDIS be technology. it Ashion. relates

us roll we give bit what the So a out here before little product of exactly strategy time is.

first we to will that be and we have very say, want that. way We ability the Suffice that it And the people lay collaborators. in to here. doing prospective quick impactful to be our customers out a to

Operator

Baird. question next is The from Catherine from Schulte

Catherine Schulte

couple think recapture you say, which guess go XXXX. to first, people of the I in maybe can to that screened Jeff, do the who Thanks I million the expect you XX% of year, ballpark And I over $XXX about? for that years? XX% next rate thinking over the implies rescreen heard right got where questions. recapturing Is be this think

Jeff Elliott

of think from revenue come rescreening, least long-term, on rescreening. half I will our Catherine, said I’ve at

strides to think patients at have knowing for opportunity. more a patients have least The this and patients, a term that have you of the even goes, we’ll So factors. patients at of pool where positive exclude out XX% teams drop I of that capturing, these the it longer that capture is made huge tremendous other

So to we’ve to not progress it made Yes, these out continues our higher. efforts give some as of recapture rate, specific capture tools go and there. but to good far people. I’m put the and as all going move that to the you place the in number team the Thanks

Catherine Schulte

over now? takes changes Pat with And change strategic are happy to the franchise, can the reopen Helpful. do Mark? leadership size or you she top sales appetite to Great. then an for in see with force more, And for you you priorities the for screening start any have what the things expanding if or talk as you

Kevin Conroy

Pat’s how improving customer to with in XX about be XX strategic we Mark’s. that customers experience message million XX the the it’s to same well to are priorities to and are old are continue group. Americans, XX unscreened as year obsessive reach the million There is It screening.

group. focus immense a that on there’s get to we sure So that making

is that supporting kicking to We’re stand our up a this populations, on focus important campaign underserved initiative to the off year. which really with Stan we’re for company cancer

force, yes. In expanding terms of sales the

in of things only than that patients typical we team. screening One more more cancer health now And about that physician. colon typically the highlighted year that or building with about of guidelines XX%, maybe the is women’s in population. XX an we’re XX% are of an There are – are olds here a there included in OB-GYN it’s

fit the colonoscopy, currently getting who expanding. maybe to to are or them examples us how of get being tests the test women referred getting Cologuard So not only one is of a getting to

more Pfizer throughout that is have how to now we will field. the year with pleased expect starting in that activity that increase. And really We’re the

having efforts unique Pfizer is the from and very Pat position together a closely working teams. to I with build in the We’re Pfizer, of think come collaborative two

Mark tremendous one the to we a start And people incredible remains moved team she built of she the difference. and organization in is as So did – year. is make of incredibly is, around and things amount organization. you’re seeing that flatten team energy, hungry an this Pat that a

Catherine Schulte

Okay, Thank you. great.

Operator

from a have Brian Weinstein Blair. William from You question

Brian Weinstein

Thanks taking the question. for

I healthy. First Megan, listening. is well she’s everybody doing congrats and and hope to most perhaps sure I’m importantly,

Kevin Conroy

better be listening. she not Brian,

Brian Weinstein

here trial important down Thrive, launch an you’re you would as with How potential you scale, of So about path things? one. it you it’s as what like know I LVT of ahead think kinds can only didn’t the FDA had about we about for the first sounds under about of a year think on chance any the in you an question size, the terms costs, some for but is it’s to And you even road, that maybe little FDA? like the time? that the pathway pretty there Is go. the way things of that those here, think bit, looks talk appreciate convinced to the

Kevin Conroy

broad-based as available multi though the role a to of studies test, getting finer we for advance test And is reimbursement There a today systems way that patients service and pocket a randomized that a their screening CancerSEEK not all for is fact technology a people goals getting of and getting research FDA a Well, a realistic. that aspects developed for service hiring difficult. very in help our could and with cancer is evidence work medical let’s without well-designed develop and new start health making offering. with of are approval the of a that know familiar with out out just potentially, the pay type in way real-world any could lab of more customers

means and the each important it’s to educate negative people to what example, be able and patient what to For result case. in positive a happens

in a conducting of a most study patients study. average higher large that likely for will such very that include a will will do patients, study randomized year. as study. terms we we in risk It a it transformative risk So test to also study start That and and intend next be population CancerSEEK,

We population, to going expects into will risk be is right to average way, the in an needed. risk guidelines do anybody’s a if get test an average it study

with the patient people developed tests be or impact diagnostic impactful one this we’ll we of Cologuard, that will up do ever And populations. to earlier. open asymptomatic detect because to significant believe with like way, most just abilities CancerSEEK so large right And abilities the cancer ability of – still its we can we positively

Brian Weinstein

about anything update MRD product. whole of Mayo a sense. talked those products Penn an Mayo lot about might the something like in do are here, kind we of Can any with lot some give or about liver when you us lung Makes you the Yes. Thanks a but else? a bit, course, relationship that about Follow-up various this on talked that an other of than thinking cancer, we on guys. initiative or get kind looking heard have the pancreatic little you’ve just with you update haven’t And at. products of key and where pipeline you’re that

Kevin Conroy

Brian. Thanks,

we the with with think Mayo can about Mayo. that wait do probably collaboration I to should until talk we

R&D Some his to we those have, and tests of bring some Bill and and one Morice as to maybe wouldn’t we’re of some on working bring they’re able with there pretty capabilities generation to would the information, future we in The more of can of have lot sometime that to excited focus we’re to we but a do share on. front. have that to don’t could we’ll day team evidence that Labs focus those like tests Mayo Maybe forward. share that right decided outside teams we be we R&D these, about teams started remarkable work, tests and on of do core now have Medical an Dr. what at areas the where that

Brian Weinstein

you. Thank it. Got

Kevin Conroy

Thanks, Brian.

Operator

you And Patrick from Citi. from question Donnelly have a

Patrick Donnelly

around. year, a guess ordering, some the mid-last visit can talk kind I launched given the happening was the order of for seen guys. seemed early what great the obviously traction question. through, Thanks amount taking side. of of website, side; on you fit electronic just like on one decent you’ve marketing It on Hey, the care primary that Maybe

that wondering can at help metrics of just kind share with look any So you you front? us on

Jeff Elliott

for Electronic we is the year. right to XX% is exceed XX% Jeff. orders. Yes. ordering total Cologuard expected we This this as year in Patrick, exit around

look So types. across you electronic at in all ordering when total,

time is, about is happened relatively think our to and What’s we’re a traction. it website features part use. things us employer to some of channel and help talking request new what Cologuard the do go tap small site. it’s channel. There the the you’re still. business to to added easier we’ve the Over on patient could where to branch-off I and into going is on made consumer is is there the gaining site It additional and payer

So tuned there. stay

and We’re increase. pandemic they It one and us that bring early respond more could get patient this way new continue to [indiscernible] the capability more just gives quickly us glad out. screened out to so and really team to go the in

Patrick Donnelly

Okay.

I here. the the asked us one just here, And about it Jeff. maybe was tailwinds have guess the to you full the then know impact, pandemic on seems about Cologuard I few holiday makes volumes; you’ve gone The helpful, it’s on year getting times a full bit kind quarter when think all does in like of balance sense. have year; kind visit of I the through here be care first the a Now of of the but what headwinds. lingering for kinds XQ? forward How Cologuard forces to primary guess terms about offsetting I kind look of out guys headwinds when try a and how the are you of year, kind thinking you of that do And visibility bit kind going here? those, you outside of outside of think being positive? tailwinds about those people

Kevin Conroy

that XX% the best that the point the colonoscopy still-off tells underlying screenings quarter, say last That in X%. fourth Again, us off up quarter. data, the were was Patrick. are that wellness they to XX% growth take me although visits were significant I’ll cologuard in fact and Let is

care for vaccine different office are going environment. very pretty to recently, very a impact vaccine, see primary screenings. clear specific a because shingles I it a you a people the a fortunately no but you’re yet, office that been get wellness until for get If I the you’ve it’s to is visits, to have back COVID And And across reason. been people there into diminish had

I think that of we’re know we cologuard solving this problem. happy what about is is that some

rescreen and that largely really So about. in we’re still we of email, an we degree have today this year, we’re time coming or that bear much impact. mostly And through screening XX Jeff in-person last all then coming telephone that opportunity, talked that. then seen the The tracking to than HLX having was this zoom visits Epic integrations And did getting Pfizer, a a opportunity of greater greater XX the are to to field is visits to force year. doing this live back or – which share

of We’re the what those year like about truly optimistic factors. looks because

to are things of things these years you XXXX that. this have on power going year and I some put Jeff, to and aside, beyond. know us to these Some don’t if working add and XXXX anything been of into for we’ve

Jeff Elliott

got order the providers how normally a model heard performance see typical can ignore And we’re can business this or predictable doctors you’ve massive And Again, I’d this that a about, across before before always model, time. years I into let’s order seen doctor more electronic any like primary time three and continue They ordering. can ordering and base XX physician more. to one-year very, see that had that to say just Normally pandemic. talk layered ordering we whether things in those now more. of never years given Patrick, horizons very two care over I add, we’ve flatten-out. or is Cologuard they’re out. all keep we pandemic, me the

this So once in longer-term is subsides, term a we really Cologuard. this the has what to excited pandemic things COVID longer heading. Near-term little store about where but extremely can makes see predict, we’re for harder

Patrick Donnelly

helpful. appreciate Thanks, That’s Kevin. Jeff, it.

Operator

question from a have UBS. And from you Brennan Dan

Dan Brennan

hoping questions, congratulations. a you XX the with taking the and I call. have Epic, can for the been fax Thanks for on potential same many you. to could Jeff, XX guess this has Thank I quantified discussed the the impact it while do you in Great. opportunity the obviously reorder opportunity one, given first was orders.

revenue the from think Epic’s way year? any, to and about rollout test So your this any impact

Jeff Elliott

this is Again Jeff. Yes.

this primary XX% of So doctors use Epic. run care country Epic, I’ll in

to that and button. to patients to a who live us, have Cologuard doctor, they will health to So a to is order what patients have partner done the the are Epic goes the any ability through more are, importantly tested back a has of year, now more right system or us order care testing and back the opportunity late because When Epic we Sciences, up the came then huge version right to for upgrades because all good really and of Epic the last for comes of click doctor. get to latest any this now Exact that is take patients we on been we

again, out doctors that’s of half there. about So

convert that help those Cologuard latest then going is to rapidly that to pull again aware once are working to and systems sure work electronically Cologuard they’re We to this ordering through available they version. make be

I if XX% revenue, end mentioned came last as far orders in electronic. before year at our of year As

a said fax. when order order physician at it expect least year. to least through I’ve this be they electronically, orders at they than before, We more XX% And when XX%

that look has Now order takes happen when they electronically, scaled you but order somebody doesn’t It at overnight. time, that’s, to more. if far

this physicians up. be onto thousands may also of providers, not mean, It see order through system may can I So helping is more go bring opportunity is have where a a huge they they rates to not order Cologuard. to test ordering order Imagine tests you health allowed fax. fax. through

onto However, once ordering platform, up you the Cologuard put open you whole a world. new brand

order more more are you also who to not now per physician, only orders do get you So going get physicians Cologuard.

excited extremely what about means this long-term. the for we’re So

Dan Brennan

very a And in it. could I with CancerSEEK I you’ve you maybe own it sounded an appreciate good don’t constructive test better. you expect, I just combined potential numbers, – wondering, one to the just go. Great. make follow-up. and I Jeff. on about But the market call the which question ability where know as Thanks, was there I’m think I any is about that already and didn’t early your know, Kevin, even gave but I think it take

what through can Thank you kind time, this what have or you successful what couldn’t of become in potential wondering help that if – be, some order that be Now I’m of might improvement test? necessary the you. think just magnitude to just a see us

Kevin Conroy

Yes. Dan. Thanks

study the and with work And next a do where in together though. of means although approaches, start to over that laid data you overall later the previously. positive. sensitivity case-control made case-control cancer day how new our there the – is larger study saw validate what could out that classes case-control Thrive team; lock of second first with and putting we higher, was similar will doing I algorithm the holding these – half stage, at Thrive share they the the significant last the study we week the impact look randomized marker in meeting at we’ll Just samples XX% specificity each that the that can September, we they potential interventional of you a that showed where a won’t say, were with that each end in but towards a could last the study in an before to data sensitivity year. significant take it detection, biased a contribution samples to Suffice them

mutation can typically we methylation not and are clearly, directly Cologuard, overlapping. So as see from

but be, of typically overlapping. Some markers directly as not those classes they may are

And to have So be some to going we to that wait there just there. see is improvement what is.

you giving other I’m improvement. So confident than an not be that there we’re qualitatively, and help very much will

Dan Brennan

That’s great. Thanks lot, a Kevin.

Kevin Conroy

point in just that one so the risk go why back place. in were thing, about excited first Dan, study out me an And I’ll we is other Thrive to average They prospective did let the population.

doing see They wherever In is we fact, studies the is that’s up average that begin to those people it that as committing a is might access potential because other and and population were were who risk going to Exact be have average critical population. screenings somewhat for us conversations with leg of risk those low-risk critical, And customers. gives in with in there a live now population prospective an but policymakers markets. Sciences to is committed

Dan Brennan

you. Thank Excellent.

Operator

Leerink. Puneet SVB have you And question from a Souda from

Puneet Souda

is with Wondering the first around on oncology are that restricted thanks you able visits physician currently where visits doing? a reps and get Jeff those stand one today? Kevin, clarification they any that we’re sense the online Hi Cologuard do obviously what expectation number do of you taking for reps low, apologize oncology visits Yes. could provided just fully of are percent you able is give Hi. that but if versus if currently, screening just around to they’re maybe still aware reps a to And if Jeff today with questions. the this. My questions, any ongoing. wanted to a sense clinics. are us just And COVID I

movement are any that? wondering just you if So in seeing

Jeff Elliott

we field. care primary XXX reps about for field sizing, Cologuard On in the have the

calling inside. have together; work on very nearly doctors. in We well Those I’m more teams the XXX

make virtual In visits. through terms The the phone face-to-face access and teams less the of do it’s COVID started. a than most still over to where it can of they was XX% and before though, relative the it what

So get know they talented. to that back best through is help the to team to conversations. They This is very, and team do out is patients, way want very there. really the motivated face-to-face

And another so On the of or have women’s – XX reps. reps. we’ve said GI we’re also adding about we before, team a XX health

we So because a know that doctors so is on to highly reps this the and Cologuard. way effective are investment is educate big market a large

oncology access depends the COVID an rep I��ll territory. side the say generically area. on cases on depends in On It the

all have there. as go our a free We back pulled to of March reps out are we company, of field. reps so had Last the the

their in back are do so is but territory. safe we where typically only of reps what out access there Now, to territories our the our open, it’s let go independent

Puneet Souda

terms there helpful. diagnostic And to colorectal leading picture Obviously I there. which question One and build key you areas very big Got cancer. for and you. wondering, prostate, position way be really just on but areas or beyond as Oncotype, That’s me could a are highlighted it. portfolio; a bit to have of you’re there It looks few understand with plate, the already found strong oncology you out in potential remained breast acquisitions and And your argue the and in a now in ambition help obviously out of a capabilities it’s Kevin quite Thank you. here. investments? full company base in a of your TGen, just years have you the with screening space back well multi of oncology, Paradigm like priority for

Kevin Conroy

diagnostics. to lot Thanks decided Puneet. we If ago led highest tests, the at capabilities. in service, take paths most need of focused ultimately had we best best to looked help. clinical, IT best that We, And us different regulatory, best a be to and going connected, truly evidence, we commercial the and could that that patients to serve strategically, years were conclusion several that quality stay teams, cancer very quality we highest

is the team build be we and importantly Health have people data, selection around multi will available to think We really in millions you we’ve tests means ability and multi-cancer I’d learning cancer we three their I it, MRD the which way to that layer three guess And huge that we upon that the the to on multi highlight so And is our, and pretty chance make is are bring the the it data, that the obviously prompt a at oncologists a changer patients impact who And based are data, Then market when and then therapy patients what to do colon them. global opportunities; outside combined which there that built to colon about screening. which based cancer need remarkable of put liquid opportunities therapy, basis like oncology, together which Tissue cancer the mine grow more game screening, you millions started it’s Popovits suggestions do and cancer both you based to will cancer that upon screening, deep U.S. in Kim of and physicians Genomic powerful. selection, a screening, have MRD, XX for and in MRD. which very on aspirations, long about progress. foundation colon to opportunity. believe screening, and we total and make the screening, billion those to And team world. top

two going look that eight in of and data four full years, because an You is have be diagnosed years, at of then from patients can and uniquely that Genomic we inform imagine signal will see would so this of stored forward? and if before sequential that ask you people blood information, time have the can platform on can and Epic that back are range they the better Do basis. or millions in on, you the how you We tests signal? cetera. cancer? you you years so, millions pancreatic offer, draws we’re day when And patients a that And with XX a question, automated what of physicians then et

So we’re excited this. so that’s why about

the is this convinced strategy. right We’re

to is We that the culture critical have that that’s that our great best say people, are believe at. is are spectrum. is continue we in – need something I And be want to broadly and to culture across thing incredible an team field the at. we this other would of the And the a that work people people

from say, to Exact or a de you years our So It’s it. good XX years la training. XX that’s considered we had successful at can a we if know, at very now, think that have be and crème best aspiration, from we the now, you’re the Sciences, salesperson chance you’ve crème,

Puneet Souda

great. That’s Thanks Thank the detail. for all you. comprehensive

Kevin Conroy

you. Okay. Thank

Operator

Draper question from Truist Sandy from Securities. final is Your

Sandy Draper

have Thanks been for squeezing so and a answered in, thanks me asked of very And much. well. questions lot the

driving with that? first ad, bowl Pfizer when a getting going the Is volume? just that make understandable and component, back the about second it X there, on and that salesforce, So more maybe started And overall I comes maybe sort thought X% maybe question. a only understand to think step-up that than on thoughts. when one, on maybe Kevin is I from lift in about the XX%, then your adding incremental some comment would the Jeff marketing. And but get Cologuard want could bit sales for just comment you out, with That’s the love talk marketing to that what’s think but to the you’re little just I bigger women’s super out I sure from price question, you revenue of

Thanks. the a had big is up where order rank sort I So instead of coming? step

Jeff Elliott

those take two. is Yes. Jeff. I’ll Sandy, this

the of patients, Kevin time, the false it least great When XX%. On compound X really thing not a points only helps percentage overall, reduction what you the patients X% to you revenue. what for in over a that our getting talked for the about, patients, positives fewer that drive false gets XX%, it also positive. is think of this about When heart at means at

as three every more years. X% patients a So stick Cologuard repeat us with

result, the lower result bad. can’t also part benefit from digit spoilage There’s a So spoiled, of low-single to a back revenue. X% is a are samples rate. and come XX% get No percent that left. no that There that’s a we of that

even Longer-term So the from X.X as rate revenue, physicians Cologuard not we it’s on biggest that address take market. those as we this perhaps even and the raised two things, X% of the lower share it’s further an will is bar help that combined. this least spoilage positioning of help think bigger our us or the at X% benefit test, I that with

One value is, that’s as X.X. we for in we back the marketing, and out reps few So up. I talked about driver think things on more field. the are getting of biggest On before Cologuard the step sales resuming a

under there’s partnership back that. to paid and of sales this with get course course activities for they perform. the to has the there, over out expect of Pfizer expect reps the that little spending year, normalize our now, Pfizer, activities Pfizer case; the year, same as more over of involved We a we and the course

and overall now be market, XX earlier. raise before help test so billion to also screened $X us new in should market a patients. help talked Cologuard with opportunity that more market major and know catalyze education to opportunity I the people about that that help they have We

campaign directly marketing targeted part at that a of have We market. the

to a and pandemic Again you’re and the because the some initiatives. drivers. are those XX, expect marketing of starting of we XX, sales to those decline So big are market new activities big bigger normalization see the

Sandy Draper

Thanks Jeff. so much, Appreciate it.

Operator

You have Thank no other questions. you.

Kevin Conroy

will advance review future in eradicating Special commitment employees all for and been you. to suffering Thank you continue Thank about made XXXX beyond. of us for their XXXX to and confidence cancer plan for We’ve the to our and fourth mission. joining our our to of and our Exact results. the unwavering mission quarter this our it never excited of Progress team more Sciences have causes. thanks

Operator

Ladies today’s this for and participating. concludes you gentlemen, Thank conference call.

disconnect. now may You

Exact Sciences (EXAS) 17 Feb 212020 Q4 Earnings call transcript