Exact Sciences Shares Rise After Company Unveils Pfizer Partnership

(Page 2 of 2)

Wednesday, and they may be one of the major reasons the company’s stock price shot up abruptly. Jeff Elliott, Exact’s chief financial officer, said in a conference call with analysts that the company projects its 2019 revenues will be about $700 million, according to a transcript of the call on the stock market website Seeking Alpha. Previously, Wall Street analysts’ average estimate was that Exact’s sales would be about $611 million next year. [This paragraph has been updated.]

After the agreement ends, Exact said it will pay Pfizer a royalty for the following 12 quarters. Like the service fees Exact will pay to the New York drug maker, royalty percentages will be based on the amount by which Exact’s revenues exceed pre-determined thresholds. The higher Exact’s sales are in a certain quarter or year, the higher the rate of royalties the company must pay to Pfizer.

Catherine Ramsey Schulte, a senior research analyst at Robert W. Baird & Co., wrote in a note that she and colleagues believe the Pfizer partnership “should be a great deal for [Exact], providing meaningfully more reach for Cologuard.”

Conroy said in the blog post he wrote that Pfizer is “one of the largest advertisers in America,” which will allow Exact to purchase ads at lower rates than those it would have to pay acting alone.

Previously, Exact has sponsored national television advertising campaigns for Cologuard, and has used digital platforms such as Google, Facebook (NASDAQ: FB), and YouTube to reach consumers.

Single PageCurrently on Page: 1 2 previous page