RiverPark Large Growth Fund is bullish on EXACT Sciences Corporation (NASDAQ: EXAS), a molecular diagnostics firm focused on the early detection and prevention of colorectal cancer. In Q2’18 investor letter, RiverPark discussed EXACT, saying that the company could become “one of the highest profit, highest growth companies in healthcare.” Let’s take a look at the fund’s investment thesis on EXACT.
We initiated a new, small position during the quarter in Exact Sciences the developer of the Cologuard test for colon cancer. Colorectal cancer (CRC) is the leading cause of cancer deaths in the US among non-smokers and the second leading cause of cancer deaths overall. Cologuard is the first stool-based home test for early CRC detection and was FDA-approved in 2014, is currently reimbursed by Medicare, Medicaid and a growing number of private payers and is now available through most healthcare providers.
Through early detection, CRC is both preventable and curable and patients that are diagnosed early are both more likely to have a complete recovery and be treated less expensively. Unfortunately, most CRC cancers are diagnosed later in the disease’s progression due to a lack of early screening and only after tangible symptoms (blood in the stool, loss of appetite or change in bowel habits) appear which occur at the later stages of the disease (Stages 3 and 4) when treatment is invasive and expensive and prognosis is poor. All healthcare professionals agree that early detection is the key to both prevention and successful treatment. Of the screening test options available, Exact Sciences’ Cologuard is more accurate than the current blood test option (FIT) and as accurate and materially less expensive and invasive than a colonoscopy.
The current CRC screening market is estimated at $13 billion although that only accounts for the 47 million people in the average risk population currently getting screened. Many researchers believe an additional 36 million people should be included in the risk population for screening and that screening should possibly occur with greater frequency than the current protocol of once every 10 years. As a result, over time, the market could be substantially bigger.
As Cologuard has been FDA approved, added to screening guidelines and approved for reimbursement, Cologuard tests completed have grown exponentially from 4,000 in 1Q15 to 176,000 in 4Q17. For the full year, 571,000 tests were completed in 2017, an increase of 134% year-over-year. Growth in 2018 remains robust at +85% in the first quarter and is expected to remain well north of 50% for several more quarters and +30% for the next several years. The company also anticipates high profitability as it scales with 80% gross margins expected longer term (up from 75% last quarter which was up 1,000 bps year-over-year) and a greater-than 25% operating margin (from negative today) over time. Despite its impressive revenue growth, the company is not yet profitable as it has been investing aggressively to build its distribution and sales infrastructure. We expect a consistent improvement in margins, net income and free cash flow over the balance of this year with sustained profitability ramping into next year. EXAS shares have been extremely volatile and while they are up substantially this year (and over the past several years) they have weakened in recent weeks, affording us the opportunity to buy a small position in what we believe can be one of the highest profit, highest growth companies in healthcare. We would look to add to our position on further weakness or should our research indicate that our estimates of the company’s profit ramp remain too conservative.
Tonhom1009/Shutterstock.com
On the share market, EXACT Sciences Corporation (NASDAQ: EXAS) has been performing very well this year so far. Since the start of the year, the stock has moved up 55.63%. The share price of the company has increased 25.96% over the past three months and 75.91% over the past 12 months. The stock, which was closed at $80.60 on Tuesday, has a consensus average target price of $84.70 and a consensus average recommendation of ‘OVERWEIGHT’, according to analysts polled by FactSet Research.
Now take a look at our hedge fund database. We can see that EXACT isn’t a very popular stock among hedge funds tracked by Insider Monkey. There were 31 funds in our database as of the end of the second quarter of 2018 that held positions in the company. Whereas, at the end of the first quarter of 2018, 26 funds were holding shares of the company, according to the database.
Artificial intelligence is the greatest investment opportunity of our lifetime. The time to invest in groundbreaking AI is now, and this stock is a steal!
My #1 AI stock pick delivered solid gains since the beginning of 2025 while popular AI stocks like NVDA and AVGO lost around 25%.
The numbers speak for themselves: while giants of the AI world bleed, our AI pick delivers, showcasing the power of our research and the immense opportunity waiting to be seized.
It’s the revolution reshaping every industry on the planet.
From driverless cars to medical breakthroughs, AI is on the cusp of a global explosion, and savvy investors stand to reap the rewards.
Here’s why this is the prime moment to jump on the AI bandwagon:
Exponential Growth on the Horizon: Forget linear growth – AI is poised for a hockey stick trajectory.
Imagine every sector, from healthcare to finance, infused with superhuman intelligence.
We’re talking disease prediction, hyper-personalized marketing, and automated logistics that streamline everything.
This isn’t a maybe – it’s an inevitability.
Early investors will be the ones positioned to ride the wave of this technological tsunami.
Ground Floor Opportunity: Remember the early days of the internet?
Those who saw the potential of tech giants back then are sitting pretty today.
AI is at a similar inflection point.
We’re not talking about established players – we’re talking about nimble startups with groundbreaking ideas and the potential to become the next Google or Amazon.
This is your chance to get in before the rockets take off!
Disruption is the New Name of the Game: Let’s face it, complacency breeds stagnation.
AI is the ultimate disruptor, and it’s shaking the foundations of traditional industries.
The companies that embrace AI will thrive, while the dinosaurs clinging to outdated methods will be left in the dust.
As an investor, you want to be on the side of the winners, and AI is the winning ticket.
The Talent Pool is Overflowing: The world’s brightest minds are flocking to AI.
From computer scientists to mathematicians, the next generation of innovators is pouring its energy into this field.
This influx of talent guarantees a constant stream of groundbreaking ideas and rapid advancements.
By investing in AI, you’re essentially backing the future.
The future is powered by artificial intelligence, and the time to invest is NOW.
Don’t be a spectator in this technological revolution.
Dive into the AI gold rush and watch your portfolio soar alongside the brightest minds of our generation.
This isn’t just about making money – it’s about being part of the future.
So, buckle up and get ready for the ride of your investment life!
Act Now and Unlock a Potential 10,000% Return: This AI Stock is a Diamond in the Rough (But Our Help is Key!)
The AI revolution is upon us, and savvy investors stand to make a fortune.
But with so many choices, how do you find the hidden gem – the company poised for explosive growth?
That’s where our expertise comes in.
We’ve got the answer, but there’s a twist…
Imagine an AI company so groundbreaking, so far ahead of the curve, that even if its stock price quadrupled today, it would still be considered ridiculously cheap.
That’s the potential you’re looking at. This isn’t just about a decent return – we’re talking about a 10,000% gain over the next decade!
Our research team has identified a hidden gem – an AI company with cutting-edge technology, massive potential, and a current stock price that screams opportunity.
This company boasts the most advanced technology in the AI sector, putting them leagues ahead of competitors.
It’s like having a race car on a go-kart track.
They have a strong possibility of cornering entire markets, becoming the undisputed leader in their field.
Here’s the catch (it’s a good one): To uncover this sleeping giant, you’ll need our exclusive intel.
We want to make sure none of our valued readers miss out on this groundbreaking opportunity!
That’s why we’re slashing the price of our Premium Readership Newsletter by a whopping 70%.
For a ridiculously low price of just $29.99, you can unlock a year’s worth of in-depth investment research and exclusive insights – that’s less than a single restaurant meal!
Here’s why this is a deal you can’t afford to pass up:
• Access to our Detailed Report on this Game-Changing AI Stock: Our in-depth report dives deep into our #1 AI stock’s groundbreaking technology and massive growth potential.
• 11 New Issues of Our Premium Readership Newsletter: You will also receive 11 new issues and at least one new stock pick per month from our monthly newsletter’s portfolio over the next 12 months. These stocks are handpicked by our research director, Dr. Inan Dogan.
• One free upcoming issue of our 70+ page Quarterly Newsletter: A value of $149
• Bonus Reports: Premium access to members-only fund manager video interviews
• Ad-Free Browsing: Enjoy a year of investment research free from distracting banner and pop-up ads, allowing you to focus on uncovering the next big opportunity.
• 30-Day Money-Back Guarantee: If you’re not absolutely satisfied with our service, we’ll provide a full refund within 30 days, no questions asked.
Space is Limited! Only 1000 spots are available for this exclusive offer. Don’t let this chance slip away – subscribe to our Premium Readership Newsletter today and unlock the potential for a life-changing investment.
Here’s what to do next:
1. Head over to our website and subscribe to our Premium Readership Newsletter for just $29.99.
2. Enjoy a year of ad-free browsing, exclusive access to our in-depth report on the revolutionary AI company, and the upcoming issues of our Premium Readership Newsletter over the next 12 months.
3. Sit back, relax, and know that you’re backed by our ironclad 30-day money-back guarantee.
Don’t miss out on this incredible opportunity! Subscribe now and take control of your AI investment future!
No worries about auto-renewals! Our 30-Day Money-Back Guarantee applies whether you’re joining us for the first time or renewing your subscription a year later!
I work for one of the largest independent financial publishers in the world – representing over 1 million people in 148 countries.
We’re independently funding today’s broadcast to address something on the mind of every investor in America right now…
Should I put my money in Artificial Intelligence?
Here to answer that for us… and give away his No. 1 free AI recommendation… is 50-year Wall Street titan, Marc Chaikin.
Marc’s been a trader, stockbroker, and analyst. He was the head of the options department at a major brokerage firm and is a sought-after expert for CNBC, Fox Business, Barron’s, and Yahoo! Finance…
But what Marc’s most known for is his award-winning stock-rating system. Which determines whether a stock could shoot sky-high in the next three to six months… or come crashing down.
That’s why Marc’s work appears in every Bloomberg and Reuters terminal on the planet…
And is still used by hundreds of banks, hedge funds, and brokerages to track the billions of dollars flowing in and out of stocks each day.
He’s used this system to survive nine bear markets… create three new indices for the Nasdaq… and even predict the brutal bear market of 2022, 90 days in advance.