Exact Sciences Corporation (NASDAQ:EXAS) Q2 2023 Earnings Call Transcript

Page 7 of 10

Everett Cunningham: Yeah, absolutely. Again, I go back to data and analytics. And as Kevin and Jeff said at the beginning, we’ve electronically connected about 40 large health systems so far this year. In the second half, we probably have about another 60 that we’re going to connect and it’s all about having that data down to the territory level and all of our sales reps having the targets where they need to go to. The last thing I’ll say is when I’m out in the field, I often hear physicians say, you have to make it easy for me to write Cologuard, to order Cologuard. And I only have seven minutes in a healthcare appointment to really talk to the patient. This is one way that we’re making it easier. Our partnering with Epic and the way in which we’re getting at our targets will serve as a growth lever moving forward.

Operator: We’ll take our next question from Puneet Souda with Leerink Partners.

Puneet Souda: Hey, Kevin, Jeff Everett. Thanks for taking the questions. I know Everett gets seven minutes. I get seven seconds here, so I’ll keep it short. Kevin, would love to know if you have early feedback from physicians and providers on the next-gen Cologuard data and what it means for them and updates from the field that you’ve had so far? And any early feedback on the payer conversations, too? Thank you.

Kevin Conroy: On Cologuard 2.0?

Puneet Souda: Next-gen Cologuard. Yeah.

Kevin Conroy: Yeah. So the next-generation Cologuard test, we do have feedback. We have feedback from KOLs, we have some feedback from payers and people are related. The reduction in the false positive rate, while increasing sensitivity for both cancer and pre-cancer is big. Now that — there’s a lot of work to do, but the initial feedback, we couldn’t be more pleased with. And what does this mean? This means that we believe, number one, that next-generation Cologuard will end up in the — fits within the current guidelines that already recommend Cologuard on particularly the USPSTF guidelines and the American Cancer Society guidelines. That’s important because those guidelines are the most important guidelines that implicate how health systems and payers are measured in terms of their quality measures.

So we believe it will be a very smooth transition from Cologuard to next-generation Cologuard. We also see that payers will be receptive to very quickly getting Cologuard adopted and paid for. We’ll also be working with the American Medical Association CPT coding group to make sure that the coding is smooth. We’ve been down this road before. We know how to do it. And the team is fired up to make sure that we do this in an efficient and impactful way because patients will benefit from next-generation Cologuard. So all the early signs couldn’t be more positive and the team can’t wait to bring this to physicians and patients.

Operator: Our next question comes from Dan Leonard with Credit Suisse.

Dan Leonard: Thank you very much. Good afternoon. Switching to Precision Oncology, possibly you could frame how much of the $10 million in revenue upside from your guidance midpoint in the quarter, how much of that was from partnered revenue versus revenue from your own Onco branded products? And then secondly, can you speak to the second half forecast in Precision Oncology, which I think at the midpoint, is a decline from the revenue you reported in the first half? Thank you.

Jeff Elliott: So, Dan, this is Jeff. I’ll take that one. The broader PO business has really good momentum. When you look at international, for example, international grew 26% in the quarter. So that’s even before Japan came online. So feeling good about that. Obviously, that — there’s no partner revenue outside the US. Even the — when you look at the global breast franchise grew in the double-digit range. So feeling good about that. But we typically don’t break out partner revenue and OncoExTra revenue. OncoExTra is off to a good start. It is early. So that’s not material yet. However, that product does help broaden out our portfolio and, importantly, help getting another product into this really talented sales team’s hands that over time will carry not only OncoExTra and Oncotype DX breast, it also carry MRD and hereditary cancer and other products.

Page 7 of 10