Exact Sciences Corporation EXAS has unveiled data highlighting significant advancements in the development of a multi-cancer early detection (MCED) test. The results of the DETECT-A (Detecting cancers Early Through Elective mutation-based blood Collection and Testing) study, which evaluated a new multi-biomarker class approach, showed improved sensitivity for early-stage and overall cancer detection.

The findings from the study were presented at the AACR (American Association of Cancer Research) Special Conference: Liquid Biopsy 2024, held in San Diego, CA.

Likely EXAS Stock Movement Following the News

After the Nov. 13 announcement, EXAS’ shares dipped 1.7%, finishing at $49.33 on Friday. On a positive note, the Exact Sciences team is advancing in its most impactful programs — colon cancer screening, molecular residual disease testing and multi-cancer screening. The company also has plans to introduce several novel tests, which will revolutionize how cancer is identified, tracked and managed, further fueling its growth. Accordingly, we expect the market sentiment surrounding the EXAS stock to remain positive surrounding this development.

Exact Sciences currently has a market capitalization of $9.13 billion. The company has an estimated long-term earnings growth of 37.1% compared with the industry’s 21%. It has delivered an earnings beat of 29.94%, on average, in the trailing four quarters.

Relevance of Exact Sciences’ New Study

Cancer is pacing to become the leading cause of death in the United States by 2030, yet only 14% of all cancers are currently diagnosed through screening. MCED testing is a major opportunity to address this stark gap in patient care.

The company’s DETECT-A study was the first-ever large, prospective, interventional study to use a blood test to detect multiple types of cancer in a real-world setting. It enrolled more than 10,000 women with no history of cancer to determine if a blood test in combination with standard-of-care screenings could detect cancers before signs and symptoms appeared.

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The research will help inform the final design of Exact Sciences’ Cancerguard test, which is currently in development and intends to harness the additive sensitivity of multiple biomarker classes to detect more cancers in earlier stages.

More on EXAS’ Study Findings

The study demonstrates the ability of a multi-biomarker class MCED test to improve early-stage sensitivity by incorporating a DNA mutation reflex approach to methylation and protein (MP) test results. When excluding breast and prostate cancer and at a 98.5% specificity, sensitivity increased by 28% for stage I cancers and 12.5% for early-stage cancers (stages I and II) in a case-control study, underscoring the potential of a three-biomarker class (DNA methylation, protein, DNA mutation reflex, or MP-r) test to improve the detection of cancer in earlier stages.

In addition, new modeling data estimate that adding MCED testing to recommended screening may reduce the incidence of stage IV cancer and, subsequently, cancer mortality over 10 years. Another new analysis from the study suggests that adding MCED testing complements guideline-recommended lung cancer screening without affecting adherence to the current standard of care.

Industry Prospects Favoring EXAS

Per a Grand View Research Report, the global MCED market is valued at $993 million (estimated) in 2023 and is likely to grow at a compound annual rate of 16.6% by 2030. The rising prevalence of multiple cancers and the demand for early detection methods are fueling the market growth.

More Updates From EXAS

Last month, Exact Sciences secured FDA’s approval for its Cologuard Plus test, approved for adults ages 45 and above who are at average risk for colorectal cancer (CRC). The approval is based on the results from the pivotal BLUE-C study, one of the largest prospective, head-to-head studies ever conducted in CRC screening.

EXAS Stock Price Performance

In the past six months, EXAS' shares have lost 3.3% compared with the industry’s decline of 6.2%.

EXAS’ Zacks Rank and Key Picks

Exact Sciences currently carries a Zacks Rank #4 (Sell).

Some better-ranked stocks in the broader medical space are Penumbra PEN, Haemonetics HAE and Globus Medical GMED, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Penumbra’s shares have risen 1%% in the past year. Estimates for the company’s 2024 earnings per share have jumped 8.1% to $2.79 in the past 30 days. PEN’s earnings beat estimates in three of the trailing four quarters and missed on one occasion, the average surprise being 10.54%. In the last reported quarter, it posted an earnings surprise of 23.19%.

Estimates for Haemonetics’ fiscal 2025 earnings per share have jumped 0.4% to $4.59 in the past 30 days. Shares of the company have rallied 7.6% in the past year compared with the industry’s growth of 21.5%. HAE’s earnings surpassed estimates in three of the trailing four quarters and missed in one, the average surprise being 2.82%. In the last reported quarter, it delivered an earnings surprise of 2.75%.

Estimates for Globus Medical’s 2024 earnings per share have increased 0.4% to $2.95 in the past 30 days. Shares of the company have surged 81.1% in the past year compared to the industry’s 23.4% growth. GMED’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 17.65%. In the last reported quarter, it delivered an earnings surprise of 27.69%.

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