Bill Oxford
Shares of Exact Sciences (NASDAQ:EXAS) traded higher on Wednesday after TD Cowen said that the company is seeking a 25% price hike from Medicare for its next-generation colorectal cancer screening test, Cologuard Plus.
Analyst Dan Brennan reaffirmed his Buy rating on the stock, arguing that if approved, the proposal would be a “big plus” for Exact (EXAS), the maker of the FDA-approved Cologuard stool-based test for colorectal cancer screening.
His remarks coincided with the Madison, Wisconsin-based firm’s participation at Tuesday’s Medicare’s Clinical Laboratory Fee Schedule (CLFS) Annual Laboratory Meeting.
According to Bloomberg News, Brennan, who reiterated EXAS as a “best SmidCap idea,” argued that the proposed price hike implied a $640 Medicare reimbursement for Cologuard Plus.
In March, Exact (EXAS) announced the online publication of data from its pivotal BLUE-C study for the Cologuard Plus, which it said would support its potential FDA approval and a subsequent market launch next year.