Cancer Blood-Test Data Lift Exact Sciences by Most in 6 Months

(Bloomberg) -- Exact Sciences Corp. surged the most since March after its chief executive unveiled data for its liquid biopsy that detected multiple cancers from a blood sample, a move that could further establish the diagnostics maker as a heavyweight in the industry.

Shares jumped as much as 29% Thursday to a seven-week high after preliminary results were showcased at Cowen’s Liquid Biopsy Summit. While the findings are “still very early” and Exact Sciences has a long path to bringing the test to market, Cowen analyst Doug Schenkel was excited by the development.

The Madison, Wisconsin-based company, which currently markets the Cologuard stool test for colon cancer, “could be well-positioned as a major player in the liquid biopsy-based cancer screening market,” Schenkel wrote. He highlighted that CEO Kevin Conroy expects to be a dominant player in detecting colon cancer as well as multiple cancers via liquid biopsy over the coming five years.

The data that were showcased spanned six cancer types, including liver, lung, ovarian and pancreatic, and demonstrated an overall sensitivity of 86% and specificity of 95%. While the test was able to detect early stage cancers, management acknowledged that the samples were biased toward later and more developed diseases.

The race to develop and bring a blood test that can be broadly used for detecting early or recurrent cancers in patients spans a number of rivals. Competitors include Guardant Health Inc., Roche’s Foundation Medicine and venture capital-backed entities like Thrive Earlier Detection, Freenome and Caris Life Sciences. Illumina Inc.’s splashy move to buy Grail Inc. for $8 billion could present another threat.

The potential for blood-based cancer screening by Exact Sciences’ rivals has “been viewed as a potential existential threat to Cologuard’s commercial positioning,” Schenkel wrote. Last week, the analyst wrote that the market for blood tests that can detect cancer could generate as much as $130 billion in revenue in the U.S. alone.

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