Jefferies Resumes Coverage on Exact Sciences (EXAS) at Buy, Price Target $7.50

Jefferies is resuming coverage on shares of Exact Sciences (NASDAQ: EXAS) with a Buy rating and $7.50 price target as they believe that their unique non-invasive stool-based DNA (sDNA) technology holds significant potential to fundamentally alter the current colorectal cancer screening paradigm, a woefully under diagnosed and treatable cancer.

The firm reports that following their positive clinical results in late 2010, the company plans to commence a pivotal clinical trial with upwards of ~12,000 enrolled patients in 3Q11 at an aggregate outlay of ~$20 million. Jefferies expects that the test could gain FDA approval by 2H13.

Jefferies comments that, "Of the ~80M U.S. citizens suitable for colorectal cancer screening, only ~25% are regularly screened. We believe EXAS's affordable, patient-friendly, non-invasive sDNA test could significantly increase screening compliance and dramatically alter the current screening paradigm. At an adoption rate of only ~30% of the target patient population, we estimate the addressable market opportunity for EXAS's CRC test to be upwards of ~$1.2B annually in the U.S. alone."

For more ratings news on Exact Sciences click here and for the rating history of Exact Sciences click here.

Shares of Exact Sciences closed at $5.29 yesterday.

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