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8-K - 8-K - EXACT SCIENCES CORPa14-23074_18k.htm

Exhibit 99

 

Contact:

Rod Hise

The Luminis Group Ltd for Exact Sciences Corp.

608-807-4607

rod@luminisgroup.com

 

For Immediate Release

 

Exact Sciences reports third-quarter 2014 financial results

 

MADISON, Wis., Oct. 27, 2014 — Exact Sciences Corp. (Nasdaq: EXAS) today announced its financial results for the quarter ended Sept. 30, 2014.

 

Exact reported total revenues of $0.0 million for the third quarter of 2014, compared to $1.0 million for the third quarter of 2013. Total revenues for the nine months ended September 30, 2014, were $0.3 million, compared to $3.1 million during the nine months ended September 30, 2013. The company’s revenue had been comprised of the non-cash amortization of up-front license fee payments paid to it by Genzyme Corp. These payments were amortized over a five-year collaboration period that ended in January 2014.

 

Exact reported a net loss of ($32.1) million, or ($0.39) a share, for the third quarter of 2014. The company had a net loss of ($11.2) million, or ($0.16) a share, for the same period of 2013. The net loss for the nine-month period ended Sept. 30, 2014, was ($67.6) million, or ($0.86) a share. The company’s net loss for the same period of 2013 was ($34.3) million, or ($0.52) a share.

 

Operating expenses for the quarter ended Sept. 30, 2014, were $32.2 million, compared to $11.2 million for the third quarter of 2013. Operating expenses for the first nine months of 2014 totaled $68.3 million, compared to $37.6 million during the same period of 2013.

 

Exact ended the third quarter of 2014 with cash, cash equivalents and marketable securities of $211.1 million, compared to $133.3 million at Dec. 31, 2013.

 

“The past three months have been among the most significant in the company’s history,” said Kevin T. Conroy, the company’s chairman and chief executive. “Following Cologuard’s approval by the FDA, Medicare officially made Cologuard available to its beneficiaries on Oct. 9 and issued a preliminary pricing decision.  We are very pleased with the significant demand from physicians and patients, and the early uptake of Cologuard since Medicare’s final national coverage decision. We are focused on educating physicians and ensuring that patients across the country know that Cologuard is a new highly-sensitive, non-invasive screening option.”

 

Third-Quarter Conference Call & Webcast

 

Company management will host a conference call and webcast on Monday, Oct. 27, 2014, at 10 a.m. ET to discuss third-quarter results. The webcast will be available at

 



 

www.exactsciences.com. Domestic callers should dial 877-212-6082 and international callers should dial 707-287-9332.  An archive of the webcast and a replay of the conference call will be available at www.exactsciences.com or by calling 855-859-2056 domestically or 404-537-3406 internationally. The access code for the conference call and replay is 23929384. The conference call, webcast and replay are open to all interested parties.

 

About Exact Sciences Corp.

 

Exact Sciences Corp. is a molecular diagnostics company focused on gastrointestinal cancers. The company’s noninvasive colorectal cancer screening test, Cologuard, is the first and only FDA-approved stool-based DNA test. Stool-based DNA technology is included in the colorectal cancer screening guidelines of the American Cancer Society and the U.S. Multi-Society Task Force on Colorectal Cancer.  For more information, please visit the company’s website at www.exactsciences.com.

 

Certain statements made in this news release contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities and Exchange Act of 1934, as amended that are intended to be covered by the “safe harbor” created by those sections.  Forward-looking statements, which are based on certain assumptions and describe our future plans, strategies and expectations, can generally be identified by the use of forward-looking terms such as “believe,” “expect,” “may,” “will,” “should,” “could,” “seek,” “intend,” “plan,” “estimate,” “anticipate” or other comparable terms.  Forward-looking statements in this news release may address the following subjects among others: statements regarding the sufficiency of our capital resources, our ability to secure favorable reimbursement rates from Medicare and other third-party payors, our estimates of the available market size and our potential penetration, expected research and development expenses, expected general and administrative expenses and our expectations concerning our business strategy.  Forward-looking statements involve inherent risks and uncertainties which could cause actual results to differ materially from those in the forward-looking statements, as a result of various factors including those risks and uncertainties described in the Risk Factors and in Management’s Discussion and Analysis of Financial Condition and Results of Operations sections of our most recently filed Annual Report on Form 10-K and our subsequently filed Quarterly Reports on Form 10-Q.  We urge you to consider those risks and uncertainties in evaluating our forward-looking statements.  We caution readers not to place undue reliance upon any such forward-looking statements, which speak only as of the date made.  Except as otherwise required by the federal securities laws, we disclaim any obligation or undertaking to publicly release any updates or revisions to any forward-looking statement contained herein (or elsewhere) to reflect any change in our expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based.

 



 

EXACT SCIENCES CORPORATION

Selected Unaudited Financial Information

Condensed Consolidated Statements of Operation Data

(Amounts in thousands, except per share data)

 

 

 

Three Months Ended

 

Nine Months Ended

 

 

 

September 30,

 

September 30,

 

 

 

2014

 

2013

 

2014

 

2013

 

 

 

 

 

 

 

 

 

 

 

License fees

 

$

 

$

1,036

 

$

294

 

$

3,108

 

 

 

 

 

 

 

 

 

 

 

Operating Expenses:

 

 

 

 

 

 

 

 

 

Research and development

 

9,073

 

6,982

 

23,677

 

20,965

 

General and administrative

 

8,994

 

3,686

 

19,810

 

9,962

 

Sales and marketing

 

13,217

 

1,615

 

23,839

 

6,676

 

Cost of sales

 

924

 

 

924

 

 

 

 

32,208

 

12,283

 

68,250

 

37,603

 

 

 

 

 

 

 

 

 

 

 

Loss from operations

 

(32,208

)

(11,247

)

(67,956

)

(34,495

)

 

 

 

 

 

 

 

 

 

 

Investment income

 

160

 

103

 

392

 

220

 

Interest expense

 

(12

)

(16

)

(40

)

(53

)

 

 

 

 

 

 

 

 

 

 

Net loss

 

$

(32,060

)

$

(11,160

)

$

(67,604

)

$

(34,328

)

 

 

 

 

 

 

 

 

 

 

Net loss per share - basic and diluted

 

$

(0.39

)

$

(0.16

)

$

(0.86

)

$

(0.52

)

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding - basic and diluted

 

82,941

 

70,559

 

78,702

 

66,389

 

 

EXACT SCIENCES CORPORATION

Selected Unaudited Financial Information

Condensed Consolidated Balance Sheet Data

(Amounts in thousands)

 

 

 

September 30,

 

December 31,

 

 

 

2014

 

2013

 

Assets

 

 

 

 

 

Cash and cash equivalents

 

$

27,829

 

$

12,851

 

Marketable securities

 

183,315

 

120,408

 

Inventory

 

2,719

 

 

Prepaid expenses and other current assets

 

2,377

 

2,199

 

Property and equipment, net

 

18,427

 

11,169

 

Total assets

 

$

234,667

 

$

146,627

 

 

 

 

 

 

 

Liabilities and stockholders’ equity

 

 

 

 

 

Total current liabilities

 

$

16,752

 

$

7,752

 

Long term debt

 

1,000

 

1,000

 

Long term accrued interest

 

100

 

84

 

Obligations under capital lease, less current portion

 

 

360

 

Lease incentive obligation, less current portion

 

1,710

 

2,115

 

Total stockholders’ equity

 

215,105

 

135,316

 

Total liabilities and stockholders’ equity

 

$

234,667

 

$

146,627