NEW YORK (GenomeWeb) – Exact Sciences and Pfizer announced today that they have entered into an agreement to copromote Exact's colorectal cancer screening test Cologuard.
Investors welcomed the news by sending Exact's shares up more than 22 percent to $61.20 in morning trading on the Nasdaq.
Under the terms of the deal, which begins in the fourth quarter and runs through 2021, Pfizer will join Exact's sales representatives in reaching out to physicians and health systems and will actively participate in the Cologuard marketing campaign in an attempt to increase the adoption rate of the test. Exact will maintain responsibility for all aspects of manufacturing and laboratory operations of Cologuard, and Pfizer will pay a share of the marketing expenses and get a 50 percent share of gross profits above an agreed upon baseline.
According to an 8K Exact filed with the US Securities and Exchange Commission today, Pfizer will pay marketing support of $20 million to $24 million each year through 2021. The baseline revenues the two companies have agreed on to trigger the profit-sharing plan are $441 million in 2018, $622 million in 2019, $861 million in 2020, and $1.19 billion in 2021.
"This partnership marks a turning point in the fight to end colorectal cancer," Exact Chairman and CEO Kevin Conroy said in a statement. "Pfizer is joining Exact Sciences' mission of eradicating colorectal cancer by helping detect the disease at its earliest, most treatable stages. Together we can help reduce the prevalence of colorectal cancer by combining the power of Cologuard and the talented Exact Sciences team with Pfizer's experience, relationships and resources."