Exact Sciences: reducing cash burn will take company through 2009

By Lisa Kerner

Charlotte, N.C., Oct. 24 - Commenting on Exact Sciences Corp.'s third-quarter financial results announced Monday, president and chief executive office Don M. Hardison said, "Reducing our cash burn rate by several million dollars per year preserves resources for future investment."

"We now believe, based on our current operating plans, that existing cash will carry us to the first quarter of 2009 without assuming any cash inflow," Hardison said during a conference call and Web cast on Tuesday.

Responding to concerns over the company's recent restructuring, which eliminated 21 positions, Hardison noted that the cuts included scientists no longer needed for research and development due to progress made in product development. In addition, sales and marketing staff were cut or reassigned in order to focus on awareness and reimbursements.

Hardison pointed out the importance of achieving Medicare approval for coverage of stool-based DNA testing for colorectal cancer and predicted that many large payors, such as state Blue Shields, would follow suit.

As an example, Hardison said that if only half of eligible people covered under Blue Shield of California were initially tested for colorectal cancer, Exact Sciences' partner LabCorp would process some 130,000 tests.

"We could achieve breakeven in just a fraction of the potential test income from one payor from one state," Hardison said.

Exact Sciences, based in Marlborough, Mass., develops screening technologies for cancer detection.

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