NEW YORK – Exact Sciences said Monday that it expects to report revenues between $472 million and $475 million for the fourth quarter ended Dec. 31, an approximately 2 percent increase over the $466.3 million it reported the same quarter of 2020 and beating analysts' average estimate of $440.3 million.
In simultaneous announcements, the company also said it has acquired testing lab PreventionGenetics, and that it has entered an exclusive license agreement to offer OncXerna's Xerna tumor microenvironment panel as part of its GEM ExTra test.
Reporting its preliminary, unaudited fourth quarter and full-year 2021 results, Exact estimated that its Q4 total revenue, excluding COVID-19 testing, increased 16 percent compared to the prior year's quarter.
The firm expects screening revenue of between $277 million and $278 million for the quarter, an increase of 11 percent from $249.7 million in Q4 2020. Precision oncology revenue, meanwhile, is anticipated to be between $148.5 million and $149.5 million, an increase of 27 percent over $117.6 in the year-ago quarter.
COVID-19 testing brought in between $46.5 million and $47.5 million, a decrease of about 53 percent year over year, Exact said.
For the full year, Exact said it anticipates reporting total revenue of about $1.77 billion, an increase of 18 percent from $1.49 billion in 2020. Its total revenue, excluding COVID-19 testing, increased 29 percent year over year.
The firm's estimated 2021 screening revenue was $1.06 billion, up 30 percent from the year before, and its precision oncology revenue is anticipated to be between $561.1 million and $562.1 million, an increase of 27 percent year over year.
During the year, the company recorded COVID-19 testing revenue between $142.5 million and $143.5 million, a decrease of 39 percent year over year, Exact said.
On the heels of its earnings release, Exact also announced its acquisition of PreventionGenetics, a move that gives the firm a new entry into hereditary cancer testing.
Under the terms of the agreement, PreventionGenetics has received total consideration of $190 million, including half in Exact Sciences common stock and half in cash.
Prevention, which Exact said expects preliminary, unaudited 2021 revenue of approximately $36 million, currently offers more than 5,000 predefined genetic tests for clinically relevant genes, additional custom panels, and comprehensive germline whole-exome and whole-genome sequencing.
"With our deep relationships in primary care and PreventionGenetics' strong reputation among genetics specialists, Exact Sciences can help more people understand their inherited risk of cancer to catch it earlier and treat it more effectively," Kevin Conroy, Exact Sciences chairman and CEO, said in a statement.
Finally, Exact also announced it has inked an exclusive licensing agreement for OncXerna's Xerna tumor microenvironment panel, a gene expression score intended to identify patients likely to respond to anti-angiogenic and immunotherapies.
"As the role of immunotherapy in cancer treatment grows, a critical unmet need among oncologists and healthcare professionals is being able to predict a patient's response to specific drugs prior to starting treatment," Matt Franklin, general manager of Precision Oncology for Exact Sciences, said in a statement.
Exact plans to offer the Xerna TME Panel as part of its GEM ExTra test, which includes a comprehensive whole-exome genomic profile and deep transcriptome analysis to identify actionable alterations associated with targeted therapy benefit or resistance.
In the future, Exact said it expects to also provide the test to biopharma partners as a clinical trial companion diagnostic.
Financial terms of the deal were not disclosed.