Boston, MA 04/28/2014 (wallstreetpr) – Growth and shareholder value creation are central to EXACT Sciences Corporation (NASDAQ:EXAS). The company is trying to improve its product portfolio while maximizing shareholder value in every way possible.
The company expects to report its fiscal 2014 first quarter later this week on Thursday, May 1. The earnings reporting will be followed by a conference call during which the management will discuss the performance and the way forward. The conference call that brings together investors and analysts is likely to witness discussions around performance improvement and effective cost management. Moreover, the conference call may also provide a glimpse into the company’s portfolio development.
Cash from equity sale
EXACT Sciences Corporation (NASDAQ:EXAS) recently realized about $138 million in cash from the sale of stock. The stock issuance was done to help the company raise money to fund various projects including new product development and working capital.
According to the management, the cash raised from the equity sale will help toward financing efforts for the Food and Drug Administration approval of its colon cancer test Cologuard. The company also expects to spend the many in the commercialization activities of Cologuard once FDA approval is obtained.
FDA approval
Cologuard is in a good standing following the unanimous approval it received before the FDA Advisory Committee. While FDA is not bound by law to adopt the resolution of its advisory arm, it often does.
The FDA advisory committee observed that the benefits of Cologuard tests outweighed any potential risks. Moreover, the satisfaction about the product’s safety and efficacy might also appeal to the regulators for approval. However, EXACT Sciences Corporation (NASDAQ:EXAS) awaits FDA approval with bated breath as the product has a huge market opportunity and breakthrough in cancer diagnostic.
Each share of EXACT Sciences Corporation (NASDAQ:EXAS) was sold to the public at $12.75 during the equity offering that resulted in $146.6 million, in gross proceeds. Shares of the company closed at $12.63 each after losing 3.59 percent in the previous session.
