EXACT Sciences Corporation (NASDAQ: EXAS) is having an incredibly strong start to the trading session this morning, and for good reason. The gains are ultimately following up on the strong growth yesterday as the result of a partnership between the company and the third largest pharmaceutical company in the world, Pfizer (PFE). Today, we’ll talk about:
- The agreement;
- what we’re seeing from EXAS as a result; and
- what we’ll be watching for ahead.
PFE To Help EXAS Sell Cologuard
Yesterday, Exact Sciences and Pfizer announced that they have entered into an agreement. Under the terms of the agreement, PFE will team up with EXAS to work together in an attempt to sell Cologuard. Of course, this is great news. After all, Pfizer is one of the world’s largest pharmaceutical companies with incredible experience in the commercialization of medications.
The truth of the matter is that EXAS was already doing a great job selling Cologuard before the agreement. The company’s second quarter sales of the screening came in at more than $100 million, with about 10,000 new healthcare providers ordering their first test. Nonetheless, with Pfizer in the midst, sales could double or more. In fact, the company could see sales climb to nearly $1 billion in 2019 considering their current growth rate and the tools that Pfizer will be bringing to the table.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to dig into the market is that the news causes the moves. When it comes to EXACT Sciences, the news proved to be overwhelmingly positive. After all, teaming up with Pfizer will likely lead to a strong increase in sales of the company’s Cologuard cancer screening. Investors reacted strongly yesterday, with gains over 8%. Today, the gains continue as investors continue to eat up the potential here. Of course, our partners at Trade Ideas were the first to alert us to the gains. Currently (10:01), EXAS is trading at $70.18 per share after a gain of $4.86 per share or 7.44% thus far today.
Stop wasting your time! Start finding winning trades in minutes with Trade Ideas!
What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on EXAS. In particular, we’re interested in following the story surrounding the company’s continued work to ramp up sales of Cologuard. Considering the partnership with Pfizer, sales are likely to climb ahead. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
Never Miss The News Again
Do you want real-time, actionable news delivered to your inbox? Join the CNA Finance mailing list below!