Exact Sciences Corp. (EXAS - Free Report) announced that it has entered into an agreement with drug giant Pfizer (PFE - Free Report) to co-promote its Cologuard test for the detection of colorectal cancer in the United States. Cologuard is the first and only FDA-approved non-invasive DNA screening option for colorectal cancer. This nationwide co-promotion deal will be valid through the end of 2021.
Following this news on Aug 22, shares of the molecular diagnostics company surged more than 30%. As a matter of fact, the stock has rallied 24.3% year to date versus the industry’s decline of 5.9%.
Per the terms of the deal, Pfizer will provide a marketing support to Cologuard and join Exact Sciences’ sales representatives in reaching out to the physicians as well as health systems from fourth-quarter 2018 onward. Exact Sciences will be solely responsible for all other aspects of manufacturing and laboratory operations of Cologuard. Whereas Pfizer will share gross profits and marketing expenses equally on contractual basis.
While Pfizer will contribute more than $65 million to Cologuard marketing efforts over the next three years, Exact Sciences will increase its spending on television and other direct-to-consumer marketing initiatives.
Colorectal is widely recognized as the most preventable yet least prevented form of cancer. It still remains the second leading cause for cancer deaths in the United Sates with more than 50,000 causalities recorded every year. This deal could prove to be a game changer for Exact Sciences. The partnership backed by Pfizer’s brand, experience and its breadth of resources notably in the primary care space is expected to help accelerate the Cologuard adoption.
Zacks Rank
Exact Sciences currently carries a Zacks Rank #4 (Sell).
Two better-ranked stocks in the pharma sector are Gilead Sciences, Inc. (GILD - Free Report) and Illumina, Inc. (ILMN - Free Report) , both sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Gilead Sciences’ earnings estimates have been moved 7.7% north for 2018 and 2.2% for 2019 over the past 60 days. The stock has gained 3% year to date.
Illumina’s earnings estimates have been revised 11.1% upward for 2018 and 8.7% for 2019 over the past 60 days. The stock has soared 53.6% so far this year.
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It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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Exact Sciences Corp. (EXAS - Free Report) announced that it has entered into an agreement with drug giant Pfizer (PFE - Free Report) to co-promote its Cologuard test for the detection of colorectal cancer in the United States. Cologuard is the first and only FDA-approved non-invasive DNA screening option for colorectal cancer. This nationwide co-promotion deal will be valid through the end of 2021.
Following this news on Aug 22, shares of the molecular diagnostics company surged more than 30%. As a matter of fact, the stock has rallied 24.3% year to date versus the industry’s decline of 5.9%.
Per the terms of the deal, Pfizer will provide a marketing support to Cologuard and join Exact Sciences’ sales representatives in reaching out to the physicians as well as health systems from fourth-quarter 2018 onward. Exact Sciences will be solely responsible for all other aspects of manufacturing and laboratory operations of Cologuard. Whereas Pfizer will share gross profits and marketing expenses equally on contractual basis.
While Pfizer will contribute more than $65 million to Cologuard marketing efforts over the next three years, Exact Sciences will increase its spending on television and other direct-to-consumer marketing initiatives.
Colorectal is widely recognized as the most preventable yet least prevented form of cancer. It still remains the second leading cause for cancer deaths in the United Sates with more than 50,000 causalities recorded every year. This deal could prove to be a game changer for Exact Sciences. The partnership backed by Pfizer’s brand, experience and its breadth of resources notably in the primary care space is expected to help accelerate the Cologuard adoption.
Zacks Rank
Exact Sciences currently carries a Zacks Rank #4 (Sell).
Two better-ranked stocks in the pharma sector are Gilead Sciences, Inc. (GILD - Free Report) and Illumina, Inc. (ILMN - Free Report) , both sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Gilead Sciences’ earnings estimates have been moved 7.7% north for 2018 and 2.2% for 2019 over the past 60 days. The stock has gained 3% year to date.
Illumina’s earnings estimates have been revised 11.1% upward for 2018 and 8.7% for 2019 over the past 60 days. The stock has soared 53.6% so far this year.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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