The company's validation studies demonstrate that the assay has a 99 percent negative predictive value, which it believes will persuade physicians of its value.
Under the terms of the deal, MDxHealth and QUT will evaluate and develop the test, which will evaluate abnormal DNA methylation changes.
The test, which detects DNA methylation markers, is being developed as an alternative to invasive cystoscopy, the current standard of care.
The investment bank gave Exact Sciences' shares a price target of $30, and said it expects higher uptake of the Cologuard test and an increase in payor contracts.
A Winthrop-University Hospital team showed that demethylated circulating cell-free DNA from dying oligodendrocytes is a biomarker for relapsing-remitting MS.