If you crunch the numbers on this company's prospects should their "Pre-Gen" DNA stool cancer screening test become included in the American Cancer Society formal guidelines, this stock could go for one of the biggest upside rides known to mankind!
Only 27 million shares outstanding and no institutional coverage to speak of. Partnership with LabCorp (LH) whereby EXAS will receive 15-17% licensing fees on each DNA test. FDA approval not needed since this is a lab test.
Company has applied for MediCare reimbursement and their application has been deemed complete.
In 2002, 14.2 million people had colonoscopies. 40% were for screening purposes. Very invasive.
85 million people over the age of 50 in this country. Colorectal cancer is the #2 killer of this age group in the U.S.
Potential numbers are as follows:
$300 test
17% of gross sales = $51 per test
40% of 14.2 million = 5.7 million potential tests
5.7 x $51 = $291 million
$291MM divided by 27 million shares = $10.77 EPS
If only 1 million tests are done ( instead of the conservative 5.7 million potential referenced in the earlier colonoscopy data from 2002 ), EXAS revenues still come out to $51 million divided by 27 million shares =
$1.88 per share
Put a 20 or 30 times medical diagnostic multiple on that number and you can see what kind of upside I am talking about.
Moreover, LabCorp will be assuming all sales and marketing expenses. EXAS essentially becomes a licensing company of their DNA technology.
The founder of EXAS, Stanley Lapidus also is the founder of CYTC, which incidentally was bought out recently by Hologic Inc., for $6.2 Billion!
As always, please do your own due-diligence.
Only 27 million shares outstanding and no institutional coverage to speak of. Partnership with LabCorp (LH) whereby EXAS will receive 15-17% licensing fees on each DNA test. FDA approval not needed since this is a lab test.
Company has applied for MediCare reimbursement and their application has been deemed complete.
In 2002, 14.2 million people had colonoscopies. 40% were for screening purposes. Very invasive.
85 million people over the age of 50 in this country. Colorectal cancer is the #2 killer of this age group in the U.S.
Potential numbers are as follows:
$300 test
17% of gross sales = $51 per test
40% of 14.2 million = 5.7 million potential tests
5.7 x $51 = $291 million
$291MM divided by 27 million shares = $10.77 EPS
If only 1 million tests are done ( instead of the conservative 5.7 million potential referenced in the earlier colonoscopy data from 2002 ), EXAS revenues still come out to $51 million divided by 27 million shares =
$1.88 per share
Put a 20 or 30 times medical diagnostic multiple on that number and you can see what kind of upside I am talking about.
Moreover, LabCorp will be assuming all sales and marketing expenses. EXAS essentially becomes a licensing company of their DNA technology.
The founder of EXAS, Stanley Lapidus also is the founder of CYTC, which incidentally was bought out recently by Hologic Inc., for $6.2 Billion!
As always, please do your own due-diligence.
