Exact Sciences' (NASDAQ:EXAS) phase 3 trial for its colon cancer detection test passed, but the stock dropped 20%. What gives? In this video, David Williamson goes into the details of Exact Sciences' DNA-based test. The overall effectiveness of the Cologuard test was 92%. However, the detection rate was 42%, less than colonoscopy, and the 87% overall accuracy rate leads to a higher false positive rate than most doctors would like to see. Is Exact Sciences doomed? Not really -- it has $100 million in the bank. It may be a takeover target, and David sees Intuitive Surgical (NASDAQ:ISRG) as a possible buyer.
Apr 19, 2013 at 5:32PM
The Motley Fool's Healthcare Analyst, I specialize in Pharma, Biotech, and how the ACA (Obamacare) is changing the business of healthcare in America. Follow me on Twitter for breaking stock news, policy thoughts, and misc musings... Follow @motleydavid
Motley Fool Returns
Stock Advisor S&P 500
5 Years 57% 39%
17+ years 349% 96%
Stock Advisor launched in February of 2002. Returns as of 12/13/2019.Join Stock Advisor