Exact Sciences (EXAS) 19 Feb 252024 Q4 Earnings call transcript

Company Profile

Participants

Derek Leckow	executive
Kevin Conroy	executive
Aaron Bloomer	executive
Catherine Ramsey	analyst
Douglas Schenkel	analyst
Tycho Peterson	analyst
Matthew Sykes	analyst
Daniel Brennan	analyst
Jack Meehan	analyst
Andrew Brackmann	analyst
Patrick Donnelly	analyst
Vijay Kumar	analyst
Brian Baranick	executive
Subhalaxmi Nambi	analyst
Puneet Souda	analyst
Daniel Leonard	analyst
William Bonello	analyst
Sung Ji Nam	analyst
Eve Burstein	analyst
Andrew Cooper	analyst
Kyle Mikson	analyst

Call transcript

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Operator

Good day, everyone, and welcome to the Exact Sciences Fourth Quarter 2024 Earnings Call. Today's call is being recorded. [Operator Instructions] I would now like to turn the conference over to Derek Leckow, Vice President, Investor Relations. Please go ahead, sir.

Derek Leckow

Thanks, operator. us Sciences joining Conference Quarter for Call. you for Fourth Exact XXXX Thank

our today are the news financial Brian release Kevin CEO; the Exact fourth will are On call quarter for available Conroy, available this Manager Precision Bloomer, today's website questions. and afternoon Chief also our be General issued at and our news company's earlier Financial exactsciences.com. results. our Officer. a on This Baranick, Sciences of presentation Oncology release Aaron and Chairman detailing

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

Our Sciences now statements. of our descriptions actual to included turn Kevin. filings. SEC are I'll earnings figures be results GAAP may of reconciliations to Exact and release, the be in through the materially our risks different from and our can in over website. press Both Discussions and such figures uncertainties call accessed available are with non-GAAP associated

Kevin Conroy

everyone. afternoon, Good Derek. Thanks,

help and it, Our preventing purpose by treatment. to personalized eradicate guiding is cancer earlier it detecting

sixth colon as We by for by include the are approval extending work biopsy pricing and being for while expenses liquid than Cancerguard molecular our Oncodetect, Highlights place X%, residual our a consecutive patients studies delivering results revenue screening screening cancer more year. for million multi-cancer great to disease Growing well two cancer making free XXXX our as Medicare and generating core test, securing more EBITDA completing Cologuard Plus, colon test with grew platform. our our recognized to flow; tests. for test; screening test; evidence operating as X.X this next-generation increasing FDA XX%, cancer in portfolio and XX% of than leveraging and non-GAAP a our doubling just reality cash

engine three power providers patients touch cancer This across Sciences tests. continued millions tens the Exact and largest increase health a of launch in and care new impact will adoption and additional points our scale year, with reach large and opportunities test with of commercial current we'll of leadership diagnostics.

better our now discuss our customer Aaron will for create We experience even XXXX. ExactNexus technology platform. and secure an with financial outlook fourth results quarter also will

Aaron Bloomer

and providers, the week enabling $XX than payers became on million. average, deliver We're quarter. grew $XXX increased everyone. to was Cologuard, million. in our top another continued health revenue new excellence, Fourth of EBITDA afternoon, on to operational led record. in On Kevin, providers Growth Cologuard care Adjusted amongst proud and XX% team's health resilience Screening us focus and quarter a solid XX XXX and systems XX% Thanks, good U.S. increased by a core each basis. or with to XX% customers Cologuard more XX% revenue payers. gaps momentum and adoption systems new close of

slightly growth outlook. points, $XXX adoption Oncotype in our long-term Adjusted base million. customer basis expanding by Oncology XXX DX revenue by expense Our increased quarter and the Growth supports EBITDA to of increased expanded volume Precision nearly margin was controls. driven internationally. led

back basis improved margins. into adjusted while As This a expanding more us and percentage reinvest to innovation than growth revenue, allowed XXX G&A meaningfully still of points.

since quarter, fourth the changes we in recent to the outlined closed expected XXXX. The January which reimbursement $XXX charge legislation. impairment million external Thrive write-down the During related acquisition, recognized in an in factors [indiscernible] the acquisition, noncash reflects primarily the

reclassified current marketing. customer and to care operations, were G&A our related reflect from better costs sales to Additionally, to

view modeling our XX-K. included For quarterly statement purposes, updated a have our income historical we within of

to and XX% $X.XX grew revenue Core billion, XXX EBITDA expanded year. full margin adjusted points. the nearly basis to Moving

cash cash ending with flow, We $X.XX than also strengthened by XXXX in year our billion in more sheet securities. free and balance the doubling

$XXX million free to cash repay notes. use cash us on the maturing generation hand allowed to also strong flow full Our convertible outlook and in

assumptions billion key first billion first Oncology some the million revenue $X.XX and Including $XXX $X.XXX guidance. for year. the million and expect XXXX and billion full between for billion and for And quarter the million million quarter million for Precision million $X.XX first and outlook, underpinning the year. $X.XXX revenue and our between we the for Screening the and between between between $XXX million our and to quarter between $XXX $XXX and million year. $XXX $XXX for $XXX total full Turning assumes $XXX revenue This

full We expect $XXX adjusted $XXX year. million the in EBITDA to million for

Cologuard implies primarily Plus and from Annual second in including available will growth of XX% half represented to points volumes quarter patients be in which approximately of revenue Medicare Cologuard Precision X% X about fee-for-service XX% total of midpoint second In will we're last initially who benefit in year. XX% including guidance Screening Oncology. Cologuard Plus, lift the at Screening, revenue.

as We Advantage volume add to and will price we with and contracts are also with starting coverage to acceleration commercial in and some months from growth Medicare over payers. the establish XX plans next XX phase

January first down Screening recall first tends please sequentially the to a the holidays. QX, in early is Cologuard to because care be a the of December quarter due to impacts quarter and This Primary between during trends. because revenue seasonal and of Specific lower revenue order completed normal utilization test. timing Screening

the steady internationally in we U.S. our and the DX GAAP In phasing. expect in and Care double-digit outlook this of Oncotype was in X/X similar in half growth XXXX about year. revenue second XXXX assumes strong Oncology, Precision Additionally, recognized growth

productivity, reinvest at Oncodetect supply leverage volume continued lab of you, G&A EBITDA midpoint include: educating including profitability. benefits growth initiatives margin and innovation. Plus, about into points continued Key providers our of fixed basis as especially price support to Kevin. as development expansion. to the research XXX in Guidance cost of chain. drivers implies near- within areas, Cologuard patients back across the adjusted our structure, from well Back allow us and Cologuard, leverage launch These and and to OpEx long-term to and Shifting and and

Kevin Conroy

Aaron. Thanks,

standard turning people next and Cologuard with million are rate as screened about XX% rescreening strong The grows Cologuard to Health people X Cologuard all-time of to within setting are eligible and this the more year organized number at their a the of for programs. get the to efforts for large stage an test Our of is care screening payers high. systems XXXX.

Our expanded engaging territories and the are highest is new in team deployed potential actively sales field providers. with ordering

growth sales developed. help one come, over Our ever even as accurate Plus costs a years training cancer improve tailwinds launch of become as team the has screening screening will revenue percentage at and rates Cologuard we most to and decrease will completed more tests productive sales marketing fuel and for These time. of

has a our oncology uniquely our for footprint double-digit global is which patient's Oncotype the strong DX of in delivered adoption a Sciences standard to Oncology growth and the guidelines. actionable powering team patients the relationships deep to position journey DX for way. of of year, step XXX,XXX Oncotype Last brand, world. every increase our cancer cancer and continue record trusted leveraging preeminent guide Exact We're around care Precision positioned holds internationally portfolio. global will broad advantages become These the insights

identifies colon likely Oncology months This result. Results more current with disease Oncodetect those for a those to of positioning same data clinical well-designed the a as published the study evidence approach a study from recur test. and found it demonstrated applying negative are strength Oncodetect than of up by Oncodetect. We in care. a showcasing imaging, patients. recently of standard Surgical tool Journal than cancer XXx patients that to with also with a vital of generating clinical earlier Oncodetect residual monitored We're the positive XX We

breast with Findings Oncodetect rock track X extended stages quarter. in cancer. from tumor the clinical launch patients we also Earlier cancer. through types, clinical for submitted the on remain We study second for results reimbursement. We're colorectal X a second prognostic solid multiple benefits this Oncodetect evidence to across month, for to generating solid Medicare validation test including

half shared in and Shifting aggressive was XX.X% the fourth on the screening. We unique cancer, developed the version excluding platform. technology XX.X%, screening track and launch X a study. second and Cancerguard. large Precision ASCEND of The the was cancer ExactNexus prostate commercial breast XXXX for new our the to types. quarter evidence of our from test the at of a Oncology most for test, data supporting test was XX.X% organization This overall in sensitivity, We remain showed sensitivity specificity laboratory through multi-cancer

our colon screening our pivotal progress blood-based remain to test share the cancer with XXXX. also track results making line and middle by of on BLUE-C We're from top study

cost with the will differentiated colon screening patient commercial infrastructure test available, it by ExactNexus. within our along navigation be science features profile. a program unique blood-based embedded Once Our existing and cancer supported

deeply the understand superior embedded ensuring Cologuard innovative early deepen our leadership in non-invasive to diagnostics best use Exact cancer tests Sciences make test. us personalized platform, these routine. and in to pipeline will patients and screening position the treatment put is providers of We capabilities standard-of-care while detection and colon

set our is be of of growth year in team execution profitability, history company three most advancements with This to from power purpose. in productive years us significant launch This the our and and continued will diagnostics. helping the achieve

Before to their the [ birth Katy on Erik son. like we and of ] turn congratulate to questions, I'd Holznecht wife, his

answer he Sciences plans our We like returns Head We're Derek to of to Exact Investor leave. Leckow new to him happy We'd Relations. welcome big when from as for have parental questions. team also the now your

Operator

Schulte, Catherine question first Our Instructions] Baird. [Operator from comes

Catherine Ramsey

starting Maybe Screening first on just guidance.

full year. the cling XX% You're growth for for

throughout acceleration implied is the there. year Some

So also out back if hit next you target. growth XXXX maybe laid get some we just half. talk Investor the build that take outlook And what acceleration you into back drivers get Day, to your years over then as the excited the about your few you to at that look

through drive and talk that might there of some acceleration. that the just maybe So confidence opportunities your

Kevin Conroy

XXXX. execution, including about colon this Cologuard the our year. platform, the ExactNexus, relationships, Three entered largest Aaron? strength year. launching Thanks, areas Cancerguard then Oncodetect Plus Catherine. Cologuard commercial launch, care Plus, tests It's -- really platform, in obviously, with new the rescreens, screening, MRD and and to the opportunity We're commercial our we're up great testing year in We our tailwinds, of reach, of Yes. another set of gap excited payer IT be screening. cancer multi-cancer three programs,

Aaron Bloomer

to with building grow success is to 'XX is for year X continues X.X screening, it to improve. going in then building pool of eligible the of growth blocks up from rate rescreen through Yes. million rescreens. in a million what patients this XXXX again, in starts The XXXX. our The patients steadily for

improvement it's growth in adherence And XX% terms continue growth that alone. of driving more progress in than in that space as in for We driving well. a engine us, huge to make for

Next continues expand. This is care to rapidly gap programs.

XXXX. to Plus. of we momentum on We Cologuard that We expect generated build talked from the the launch about

of Most for full points back-end be price to X about the going expect year. We that's of weighted.

a we're about to go on screening half have so if year the of have X-point that's lifting for you'd X- you're at There's contracting And the looking that with making heavy preparing back launch, a Med the and sequential, alone. going already growth to payers. terms progress in of and Advantage in impact of lot into commercial to

number to And commercial see changes a drive green of year. starting then a positivity of start We're with and to customer to lastly, improved off shoots the we've base made execution. solid to that

In goals, long-term to the made either no both terms the really guidance, change profitability. in long-term in on goals our our There's with or on long-term growth profitability. of terms of terms progress and confident growth on pleased and in the of point thinking we've

we That's in on Cologuard levers as going And Our to and XXXX. contracts we over continue the into modest progress made basis begin renegotiate expansion to in 'XX 'XX head work ramp expecting points towards those XXX and another great to XXXX XXXX guidance margin Plus. to in again then up includes implied payers. outlook. with to multiple margin drive guide the as 'XX from time We're side, that assumptions

Operator

from we'll Doug Wolfe And up Schenkel, hear Research. next,

Douglas Schenkel

to Two Derek I'll questions, Erik. out and way. and get both Congrats of the then

bit want in history think meaningfully productive and X press do growth robust the those revenue the just you company. SG&A while and to growth giving essentially those rate The can Cologuard that, a single number of big about by you of first on as goal you're operating company. the define also XXXX a things is of most is leverage. of that demonstrating that growing mean what year, year in the possibly the us how year your record you just things the you just unpack driving volume that more launch and productive you in the history sales, remarks, at prepared all about below see the your little about talk as I of most of products and in Can balancing a release being balancing you talked a

And the question. guidance then second is the question

MRD contributions numbers those? Essentially, revenue of how terms you guidance both are for MCED of those guidance, what's In about and thinking in the in line? at

Kevin Conroy

Doug. part it pass first Thanks, Yes. Aaron. take over the and I'll to

will I with history. hit the but reason Cologuard a think launching believe we're to best we Not tests. only growth strong be upon impactful do as we're our we drivers of continued the really there, you three at year what in lot with you expect mentioned, looking see

think lift top margin line we've not and resourced this but way, in I expansion. appropriate seeing aggressive also only the an in we're

each things. we of are capable So have a we of these doing team -- that is

the new meeting force and born these that is R&D couple We and highly led of years intense trial launches, efforts. clinical have big two have of team different and energized motivated. weeks teams multiple businesses of which are just product strong a ago, had sales general We by global a managers by been

Aaron Bloomer

Yes. productivity. to expansion been of specifically, work going on the more there's unpacking to us lot more And and that has a over of do, will and that's Doug, a for the within we driver then sales time. There's the do G&A, and just G&A. margin largest to SG&A lot can be that done. continue

we're On we pleased and productivity the got marketing, out that XXXX. really of and sales leverage with

in saw go that revenue XXXX. rep up example, an in Cologuard As go up. per continue expect continues up to in go to again We to We'd that XXXX.

to launches the in unpacking resources about that Plus, the Cologuard have able we the As dropping the have got. we XXXX, that infrastructure in product investing we good about to feel into be think that support that you we've

leverage to And invest going existing that that going to we're product launch we're new and for that, MRD, space successful. a it's sure a we the have. force look Cancerguard, to for and sales to Similar is make us, new then

contemplated the have a Cancerguard MRD on guide comment impact. dates really both how we in of launch. MolDx recently looking and On within both just as just the to to launching we the we we're submitted forward we'll throughout much have MRD, products those and on year do of and modest results provide XXXX We

Operator

Next, we'll from hear Tycho Peterson, Jefferies.

Tycho Peterson

probe maybe are outlook below a EBITDA. on bit you I the want to little the bit a guiding margin little because Street on

point Is to little than able Aaron, be spending the telegraphed? bit a sales deeper assay some are flight programs just this and So G&A? And takeaway is can these And make blood. here? on is maybe, It G&A? whether that previously talk whether cut that to down. seems assay in you the there's the on the marketing -- is debate you down. going to blood then locked kind follow-up at like higher a you about And of still are sure are I on on locked want can you on

Aaron Bloomer

on made expansion progress Again, with XXXX. the really we've pleased margin in

percent outlook by into XX-plus of puts think really in longer-term XXXX. strong I walking position, us a our

XXXX, line. a get head there's you along the Plus and expect driving we're growth. in enabling points and X as called that's even growth basis one impact points productivity to We X into an XX% kind more our of is the year. of a and going across to lot look drivers on with expansion, XXXX those about key meaningful XXXX. margin to also XXX of to We've expansion across functions. Cologuard from organizations, meaningful have this margin We'd each We're we That's now out another that lift haul, G&A. margin cost If with look guidance outlined going chain, at our fixed leverage supply long labs, it of starts deliver over the

of biggest optimization is we there. an There then is that And It was a is area 'XX. on we've in of which lot made lastly progress. expansion G&A will the driver margin do work more

XXXX. come Specific Plus the expansion margin the to modest in then of of We'd through gross going volume Cologuard a gross components pricing. with to expect in margin. leverage, couple starting P&L 'XX, That's

margins well productivity Cologuard, both products about on have through a you Cologuard to market, pricing. we as current If initiatives plus think we Plus XX% Oncotype gross the path the that as see DX,

R&D, G&A, moving percent-to-sales invest margin more going we forward. we're to what going of that Areas investment where a in mentioned, expansion come. be pleased and in at, XXXX. is R&D. a huge that's going with about us in we're to and to as There similar more to CRC be in to growth had I in largely continue and driver we're R&D, to done, invest at MRD innovation about in is XXXX think for

productivity with launch out investment would we note sales 'XX. over had again pleased year the Kevin? get to within a of and XXXX marketing, We of of P&L Rounding of again, the the that leverage with then line leverage and supporting expect time. in on is MRD.

Kevin Conroy

this Yes. If piece. similar end. nobody to And we're we'll come going at the Tycho, limit Thanks. and to to ask try that question, back to a one question

Operator

Sachs. next We'll Sykes, to go Goldman Matt

Matthew Sykes

the we were commercial team you the new Maybe this little of team you maybe some going bit on year just you year, focus maybe just just some to that, of some based QX the lines last can you've some along sales given to changes year, the talk in the of of the and had saw Post about made? year? for for from lack this what number the new of QX given acceleration got of challenges a of QX launches last

Kevin Conroy

that side, data of surgical they're the heading to year, with appropriate oncologists, year, And calling on rep coverage really those this providers. field the have the yes, to oncology that armed reps make pathologists, right health last we're on happy that Yes. oncologists, team they are sized the and for into the and the Also primary armed right care that. as we Thanks and care we're end need the frequency data. right achieve with sure precision reach the of

is the on as any colon pleased screening team on extensively big XX% new is the with screening to specificity test the were a sales isn't that. which, So at side, close where Cologuard cancer other sensitivity, we're reminder trained having Plus, just products, there really Cologuard that meeting. They Plus XX%

are So recharging heading you million the -- of of total This this percentage will leading This incredibly to going has -- XX reminder We really people historically. are up. there calls leading the one, kind is let and new right the of of things course, And pleased field procedure, that Number in focused have indicators we just the screening to excited But the colonoscopy of those of couple -- these power as the all sector. proven that care have are these enhanced believe of the million on both but into the calls of team are screen. XX on force, a an health left couple of to to are that start calls see are quarters with. impact. activity take year. a a up a providers have to it's impact. -- there worked And a that

can So we our start X the in Cologuard better last year this opportunity and well. base the a believe those with customer who why and execute new excitement That's of are do we year especially level years. we very customers to high to have an core in

Operator

from Cowen. TD Dan to Brennan go We'll

Daniel Brennan

given Kevin, higher am the volume but Just on if It test. I you're price a is price, wondering just better I'm in taking you're Plus, any wondering benefit lift. Cologuard materially baking

were for conversion there that see of I'm are wondering surveying on the docs sidelines some that So field is from could the chance always of you of and doctors. you kind hearing a have Cologuard? guys stayed the what the just you

if profile just Cologuard shield related from launch, kind just in broadly on you test hear color Cologuard, of early any we'll as hearing the would. very as wondering, this early that more launch. I you're it's I'm Gardner then the Marnie. compares obviously [ blood And the from to of it's guess, the to field it in but ]

Kevin Conroy

that. question and that I'm Well, again, Yes. leading the question. come sure XX% will Blood, Plus. we specificity, take sensitivity, are Cologuard again I'll will Dan. somebody first on back Thanks, with ask XX% to Cologuard Plus,

of of And in both the with new. field we're early launch that QX level and high there's of health force for performance. a the -- a engagement. high expect of It's and We a It's the QX. level seeing level high in test excitement because of care and customer powerful level in performance, base in provider data that

would believe have about not message to And population. That about to will. million significant only Cologuard huge a you people of X.X at date, that think detection ] them improving only colonoscopy estimate looked then that Will you use way has see and X.X as think we XX% million up about unscreened -- also -- driving asymptomatic. are miss a we're there's population, first. that at reducing And output. that implement [ way those And the volume, costs rate we leading in to means the there if a total that We're have to XX question cancers X.X this they of the of experts U.S. Cologuard capacity and with Cologuard on impact big, Cologuard, in been also or who there find the first million screen screening, you if test, to experts would of you And the Cologuard the screen. and estimate million. screening people backlog we XX didn't

is come And care fewer money you and more find Plus more, to we It that's system ton find you screening. of cancers power will earlier. Cologuard back blood-based So colonoscopy. saves of the colon health to on cancer a send importantly, the

Operator

comes Meehan, Research. The next question Nephron Jack from

Jack Meehan

study. on I'll the of the that status BLUE-C and test lockdown ask the of follow blood to Tycho's just colon honor getting up It will be my question. leg

Kevin Conroy

Yes.

be believe million into a measures. patients that get priced test, the there's tests continues on to blood have data that for The terms impact will With of and people our million, up track not test, with our like the our in yet, haven't bring very marker new that these believe best multiple Until Plus. we to work more real to minimum is the Medicare comment quality that respect to unlock to is report which that coverage, screened. But test, test will have we that summer team think there, our of named to on Cologuard ensure on to mortality. to had hard CRC of So we and FDA there. an are to the earliest an again to not at I'd the that cancer a impact [indiscernible] our the competition. reiterate competitive because volumes delayed dynamic. seeing we've Cologuard of this, want of of XXXX an need we a The test. hard it. you XX about in test, really class effort blood colon -- now, this when we of with on middle get to to any and expect enormous inclusion, are bring we we it's people up team like I news terms say with no to testing prepared to screening. to you working opportunity in be -- with that's are date a to XX not many usually beyond it year XXXX, problem. blood-based address so is and And order not one XXXX, squarely with very U.S. requirements the takes that We address now, could to be impact then the some really approval, have able USPSTF late in and impact, There lot going a some guideline reasonably

Operator

next And Blair William up is Brackmann. from Andrew

Andrew Brackmann

Cologuard into of the What's then to just Maybe reimbursement some And again. head with you're you've payers? Congrats of progress on Derek, of commercial sure I'm looking in price? forward working to with And upcoming about the been maybe sort any can Erik, Plus, in just from the front Supreme their you change listening. the on talk tone Braidwood you. light higher Court? made also, receptivity this case

Kevin Conroy

somebody question, come first Cologuard sure will I'm in at Plus Yes, back to reimbursement. the second. a

that payers As should pricing pricing. you handful a cover there a We've patients, victory payer, and XX% know, about to Medicare, today. with of we task seen a largest our that of will be with $XXX the initially the issued which had price. Medicare us is fee-for-service Medicare apply which is -- at volume that also That's and same floor contract on of

over course payers. we able of XX time, that we All the payers. we period the with that XX be about deep next work And There to relationships to months, have to will of our through We been over contract. together, have expect expect XXX ] one covered a already covered policy and large Blue's smaller that acknowledged or state Cologuard then has And a that payer major have standpoint been national payer there [indiscernible] some from also including the that [ Cologuard. plan for contracted. fairly plans, has and

think the going performance come, it's driven value payers. So we'll but we're path clear real false forward, a by where XX% sensitivity drives and And we a quarters for of pretty provide like That starting. improved positive. to color in more we much mainly

Operator

Patrick is Donnelly, question next The Citi.

Patrick Donnelly

you Oncodetect, ] years. which of few on how the three out you the What NSAID Just like side. this MRD of just those maybe the contribution the and pipeline revenue next Kevin, [ aren't material talk does do you pathway like? as for I some Can the look look I feel unnamed the become path maybe blood another we one guess, CRC, on trajectory and them the Cancerguard, here on you the about year. the the material tests about, of over know that then side, side said think just first? curious

Kevin Conroy

impact. say probably I MRD Well, followed And first and of would has screening. Cologuard the by Plus, biggest course, multi-cancer

the multi-cancer term of of the in at all long term, biggest -- If one nearest diagnostics. you opportunities look opportunity screening cancer is

Oncodetect screening, So of it. the yet, fast-growing, Plus and field, underpenetrated colon position multi-cancer area X to well-defined in cancer in have a a we're screening. largest impactful of tests in areas in testing Cologuard the hugely in vastly MRD Cancerguard

we to why for technology So levered believe because do huge impact, deliver we've patient can which investments growing and investments way. one reinvest have term. long huge the That's to beyond, us is going impact firmly these to that a we made know biggest growth, I in don't continue double-digit allowing to this profitability, part large and structural to now commercial in us allow decade

Aaron Bloomer

with and time. the our to attractive leverage it we're economics, get tests field, be of huge is ExactNexus able platform it the the that's beauty over into best as and one existing infrastructure these to, commercial drop on scale test And of that very in our going

Operator

Kumar, Evercore next today ISI. Vijay The comes question from

Vijay Kumar

on Kevin, more maybe data had comments on from near-term this the a that being perhaps last MRD, opportunity. question here your We Alpha-CORRECT. around

how do we What DX. was I remind that revenue Beta-CORRECT? ramp? about largest the like used population you compete is was being think critical data for see And the in ] algorithm more percentage And you right, of what the results, reimbursement? submitted when us you on is of algorithm used. can [ on I Could think based those two think Timing data, should your space? that Beta-CORRECT? there on some how How the that covered? in confusion we which is competitor against

Kevin Conroy

there's one about MRD. in question there, overarching all Vijay, think I and that's

GM I to Precision of don't it Oncology. pass why our Baranick, So Brian over

Brian Baranick

we'll the It June is promising frame. is the press publication was that These independently data which algorithm results, in very We that was look start will here we which within question, say say we teams point language the in colon. to and followed a of here the really in in we III referenced earlier II, you that have data time going the it in One, do And adjustment forward we study, kept at release assay performance believe took study. the made cut then, the again, study. do Beta-CORRECT those of extend that the the that of the we because into realigned cancer. in Kevin. blind. all the Thanks, into under reference we're sharing of cancer to if call. we embargo, all the Stage embargo, IV then study, with GALAXY couple used was ASCO in to looks in the Stage the will methodology which and I'll I'll substudy -- the colon JSO were things. that what well validated a confirm were Alpha-CORRECT the There there. we rectal around will is as us the lot And first is our as What and

With team. respect of years MRD to within step just cancer a the U.S. X where I are, underpenetrated X lot diagnosis. think large alone and we original mean, have are overall in program, our excitement just about a that there's the within There's million we patients over their market. we of If back

a that clinical need. excited of large and top on very data. unmet the program, We're very, layer Alpha- about Beta-CORRECT You

also have unique believe that We we some advantages. strong competitive really

forward. the You've a Oncodetect to heard and deep have those and to going think quite of cancer customers one And arguably that, to times diagnostics. the skills We platform We we products really high-value the wasn't create hungry reference new unique for We to to relationships, that's leverage is customer team a already. Genomic tenured brands. several then help on strongest, those We to playbook and not patients centralized the a call if that build playbook. market propel frankly, that to they this Prior ExactNexus sales differentiated Health, that bring serve. experience. strongest there have utilize intend

going and forward. looking we what driving launch. do forward forward to to So look We're the we're in excited we're to QX,

Operator

is question today Nambi, Securities. Guggenheim Subu next The

Subhalaxmi Nambi

it a percent ask can with be a you or better follow-up on presented at performance question? Vijay's expected what Can few Is the the to be points specificity? I or ASCO sensitivity test either consistent had to GR

Brian Baranick

Unfortunately, I'll my go we data looks the look to previous promising, forward the for statement encouraged, back say Well, the is question. to and details. sharing Thanks the embargo. under and just data follow-up we're Yes.

colorectal, We lead just published announced of tumor also assay, ASCO. you were And multisolid scenario the studies the showed positive if XXx investments access look at data sharing call, look the to a The look out which we look GALAXY we study work the the Kevin And well. to imaging at to that to recurrence. number and parent earlier this able who very were standard-of-care in across if longitudinal XX-month mentioned Oncology with get performance and time the to that clinical that forward have you then well-known at the Surgical specificity cancer to we've got you were are of patients that that subset recurrence. was assays at will in go a more competitive stop as is partner, in Oncodetect on Flatiron, than If excited into we Journal the a and in likely prospective setting, breast we other patient negative of with our being serial January, and on study, the a sensitivity of who the and there. back bring study, us

Operator

Leerink from question. Souda Partners has the Puneet next

Puneet Souda

pricing. on Cologuard for of Cancerguard? see and if versus higher the pieces pricing you that a from points pricing? can can that give what you Plus levers more lift So than And drive think shouldn't simple that assumption are wondering we one from you provided? And Why what X me potentially

Aaron Bloomer

assumes alluded Medicare So population, roughly which, and represents increased launch Implying obviously the revenue Medicare about an mind, lab. in back to that to value in of when now XX% and too, test as of a an guide fee-for-service our XX%. a the Kevin earlier, get the when we points that fee-for-service in essentially we has two Cologuard QX Medicare within order typical between volume. when Keep lag that we there's recognize in is get just volume

going in to from of contribution be year. is the lift the half pricing of Plus most Cologuard back so the And

Kevin? we to able are we Kevin re-renegotiate that to that and As on earlier, with go be to on. beginning give conversations those alluded price, as payers updates we'll

Kevin Conroy

now, year. year assumption we contracts. to that's of next right upside there's -- this And beginning It's occur than is Yes. going potential the update more as that,

team at So conversations. is upside, there is having our work, those hard

to of come the keeping back In we'll ask that list. Cancerguard question. We're price, that terms if else the somebody

Operator

Dan UBS. is up next Leonard, And

Daniel Leonard

cetera. pricing I given floor few et I that Plus you thinking a messaging a more question Screening learn would X have growth what's rescreens, over be love Cologuard to on in variance. the months. was were I'd your at hoping about XX% your you for XXXX, the And comment XX% a changed past could on months that ago, thought that midpoint. guidance I

Kevin Conroy

In do what XX% form we signaled that growth? recall you

Daniel Leonard

analyst that was it you have after-party post the think earnings I call.

Kevin Conroy

ever it's you No. is upside there to of that is some something we second Yes, our the impact guide? have messaged in this we have heard year. that Medicare in if cetera. is. contracts the -- And Aaron Screening February we plans, now. Well, reenergized execution on if there Screening more of commercial plans, new the updated first the commercial -- some and If the force not but side, product and half half, that we see Advantage have right terms we're mentioned, seeing the year launches this around side, et enhanced commercial shoots as But green the some in metrics on sales

is That's go. think, higher, And team than So our you last saw is ready to the we guide slightly and raring our there I guide year. Screening. on --

then year we're care entered with It's [ due Cologuard So Cologuard expand third believe ] big to I rescreen there and care of there program, a to to continue going that this opportunities fourth commercial for we Those getting test is us possible. gap. -- and rescreens for anniversary who year. the able our an levers. So execution. X will their the And Plus well point is are are second, execute just gap be look, strong more X-year we those as on close to for to, to opportunity automating or are us screened execute to people

Aaron Bloomer

consensus said And growth. if we for consensus we right that look was at the comfortable with where at what of was you it's which midpoint Screening, on where was. our XX% were was, JPMorgan And guide

Operator

next Bill Hallum. Bonello, is The Craig question

William Bonello

big rescreen seeing the eligible, of So and in sort just people given of uptick your to seems X I on the it comments kind the that numbers? expectation on the envelope the rate you're math, in improvement back million like growing time implicit a actually you're we about consistent digits. the with for that, kind that is first Is of mid-single is the that thinking population to maybe how screened people of see low-

Aaron Bloomer

the time. screened your time. With off get us in Cologuard, new ordering newest And population. more the patients for younger to way gap highest commercial organization, and number I'd first And growth target thing of the isn't to drive that's to going in gaps continue last channel great targeting out are have what younger far also alluded that is continue to as is younger ads experiences that mind Bill, that directionally, Important with we're the keep us to to we've really patient for and made a patient that you've that we're to forward. to but call look the channel we've order Kevin a over changes grow the some deliver a noticed propensity marketing get population, is moving providers to guidance. we our well. to that math population for Care a to to to probably trying the us included for care

Operator

Sung Scotiabank. Ji Nam, Up next is

Sung Ji Nam

in terms the Cancerguard having could curious but there? kind you mentioned the have of third-party traction of see Without bit on was one a where little when you your to existing leveraging different of launch, as there? elaborate in force, more biggest sales that Just reimbursement your well. you you You channels just go-to-market I expect strategy terms

Kevin Conroy

earlier, they within if And for to need centers why? cancers cancer is they population their field care other than take life They're have to Health the at amazing. the keep force. a existing huge it's Cancerguard they is interested cold. you help why more in more and needs. current cycle their patient were Yes, the pressing point community are with those see this identify And in product -- to leverage systems patients the question

team, health through sales opportunity. we going And large to so as large is our strong believe with systems a be system we this health talk

to to tend Our Cancerguard to at of patients has lot point. we a excitement screening field there's who've it and a and those ability the our delivering Cancerguard and And cancer. do previously too, get force with been team the Oncology our wait can't Precision price around diagnosed team,

point. A think I amenable that's about price to asked question a point differentiated a pay. out-of-pocket somebody and more price likely

Operator

Next Research up Bernstein Eve Burstein, is

Eve Burstein

actually question I'd like about follow Andrew's Braidwood. to up on

the XXXX, from Court, when after the be recommendations that to is heard cost March longer here case upheld by it's interpretation sharing. is Supreme covered need USPSTF no my any the without So court if of

appeal? correct? future test by cost If so, patient that are sharing regulatory by are for kind change payers any pretty revoked the to that's So you need preparing means would some allow blood [ without if how that that be of to cost be and then that quickly business. And covered there imagine big filings hit Like that I no both Court How payers? does a -- or of pull planning this Is Exact's longer Cologuard Supreme sort no could private sharing. without don't warning. ]

Kevin Conroy

quality in because going are to the to get business their motivated drive payers We hit to patients screened measures. to there's their believe order a highly be don't

to So standpoint to a as both high a obviously, there see result, prevention, the expect any if across board that board. quality scores just system significant the bonuses quality the large are that to the co-pay, measure and associated the standpoint their a from prevention. to payer don't decided do of plan across competitors we the their changes and a example, because almost standpoint whereas to be impose health because also measures focus they're on in the afford patient certainly didn't, remains they from can't for client let's And health take, tied and with a

lawsuit a costs. USPSTF A Grade Care recommendations with terms zero was cover out-of-pocket that Act In ensures the from is Braidwood is of requirement Braidwood? or services Braidwood, what that B challenges Affordable

the for you payers in already is So set. Biden And same administration ] prevention. high. have are also [ to and the incoming know, for that are scores this seen, administration the of the administration, that position XXXX positive their sign again, motivated field -- keep may screening plans highly we we a the As the Trump opposing is taking lawsuit, obviously whole as

would even wait anybody to So they have did to if want change, XXXX. until

Operator

The Raymond comes from next Cooper, question Andrew James.

Andrew Cooper

bit little Precision already lot maybe on Oncology. so A asked, a

have, the so out, or strip a year, million bit transition slower. we about close and you $XX guide think assuming that little it, to you If it's the Nexus did call headwind

least little Oncodetect at in. have bit a You -- dropping a should of of bit little

DX grow sales the Oncodetect. in little the marketing, can't more area the talk why related, maybe through investments Aaron in that think and answer, talked In what So assumptions as I some another and for force. quiver we've about sales you bit past, us previous Oncotype a out a there that behind are called then And the faster?

or what's does terms maybe changed incremental So commercial where team? the of support spend to in need that Oncodetect go to

Aaron Bloomer

so for that rate of Andrew, non-repeated we the guide, that change. the the yes, that, mid-single-digit growth expect just kind tailwind from PO. just the We One, onto ExactNexus platform year full the collection would two, in cash will improve terms but ExactNexus putting of a over from things know time.

of be business is If internationally business, you U.S. the led then to going of growth strong guide, is just from again. just the core the well. growth think underlying growth again maybe Specific I piece to about the our business international, double-digit as oncology by and would like highlight momentum piece anticipating U.S., Oncotype And steady. the continued QX with growth PO in

euro impact the of back essentially as kind and as have seeing and [ reference the a out we core That's at on yen on backing business single-digit out lab APAC the look growth some ] low this we headwinds revenue well where we're you in If from basis, that the QX. have.

investments, of we're is we out we're with making sure comment side gate the of force But to to that come on and team that I the say product a [ to side marketing respect really sales the investments sales have the launch. make what successful ] not to size going marketing make we're With and on the and exact intelligent Oncodetect, of sales force. will the being

needed making equation. on we're the to need clinical make we addition, In of evidence investments the the side

going a We X,XXX patients investing and studies the about deploying on. But we collectively have talked we're CORRECT-I lot have colorectal, which that to in. over we're Oncodetect in CORRECT-II haven't that be

related in in of over patients that the that what Flatiron we to equation, the in patients. X,XXX probably have We breast we plan press the on multicancer side study release collectively enroll will then X,XXX cancer clinical the have largest multi-cancer, And is prospective on enrolling.

investing side smart breast sure to we the tumor. equation marketing from into of the intelligent development aggressively and move support Oncotype that make colorectal quickly sales So on and team, ultimately, multisolid into existing but the also investments to making can on

Operator

Kyle Mikson from Canaccord has the question. next

Kyle Mikson

and implied? of the dollars on standard ordering talk care Kevin about 'XX contribution could business in growth rate update and versus the any year gap any 'XX from relatedly, Cologuard Aaron, just care And revenue primary terms you [indiscernible] shifting

Aaron Bloomer

past the of revenue the patients sizing care we this about more We're rates From lot assuming through in part in And the expect return perspective, in We're talked XXXX. adherence we heading to back what and a of the lot phasing rate we're as that doing a to into similar That we've be adherence the But seeing things XXXX. X/X exactly than the it Kyle, did would continue full if growth to XXXX. business last gap in similar meaningful about what guide, gap say we from think to was without about in in you year, of year came as half so the in gap improve on growth well. build phasing care saw well. We're programs. of or adherence will a XXXX. triple-digit a guidance year that perspective, in assuming program momentum care XXXX. QX I just XXX,XXX

Kevin Conroy

in in quality interval of to testing. about that I powerful, and screening. ExactNexus measures way starting in with remind And is to gaps. relationships what we're the brand systems the us drivers do X-year that Cologuard deep seeing people, awareness a a that a awfully want along Yes. lot because and of payers, are That's the think credit allows the it and the for this and payers care just it's to comes with that's shift guidelines, health platform just technology of our is Cologuard

And look, there. a these we've And this where grow per screeners can come in the be going over future. And year." time, "Hey, we're through said, programs are X $XXX to could so million-plus screening opportunity a first-time lot of the in it people million-plus from

Operator

Sergott, is next Luke The Barclays. question

Unknown Analyst

I appreciate to upside the Leonard's Luke. Screening of for This is Maybe on picking growth. on here. Dan off color [ question Sam ]

a You're 'XX. guiding to similar year this Screening to growth

already. if about And I'm X% care pricing or maybe you talked growth guys wondering quarter contribution a kind the and so ago. talked regarding gap, You contribution rescreening XX% maybe of about

there. So I'm still leave is wondering just it intact. that I'll if And

Aaron Bloomer

very Yes, much still that is intact.

talked that, growth something than between to that slightly collectively, time. XX% year. we've of for more you be about opportunity rescreens gives gap what maybe continues growth. the us XX% that so growing Rescreens And and over to per It's is care largest north

And that so high-single care kind we'll contribute do of you math kind digits, mid- means on to and then can for of the what gap.

Operator

does conclude your That like you would participation. question. our all for last our was for that thank everyone, to today. And We conference

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