Chief Investment Strategist
Summary: Cancer treatment is one of the most lucrative areas of disease treatment due to the global number of cancer cases yearly. Early detection of cancer is key in the treatment of cancer as it increases the effectiveness of cancer treatment. A new diagnosis method called liquid biopsy holds a lot of potential and Exact Sciences is leading the field with a commercial diagnosis test on colon cancer. Yesterday, the shares were up 27% on results presented at a conference showing that the company's liquid biopsy test can detect six difference cancer types in early stage from blood samples.
On the Cowen Liquid Biopsy Summit yesterday, Exact Sciences presented a breakthrough in its liquid biopsy test using blood samples to diagnose multiple cancer types (see slide from the company’s presentation) at an early stage. The company already has a commercial liquid biopsy test for detecting colon cancer and has been a true US biotechnology success story growing revenue from $39mn in 2015 to $1.13bn in 2019. The technology offers a lot of hope in cancer treatment as early detection increases the probability of successful treatment. Liquid biopsies are also much more scalable and effective than scanning of tumors or dysplasia (changes in body cells).
The share price jumped 27% on the news as the test results show the potential of this cancer diagnostics technology. Exact Sciences is leading in this new frontier of diagnosis and has 250+ R&D people working on finding cancer markers. The company has over 3,000 patents filed for these cancer markers providing a strong competitive advantage. While the company has grown revenue impressive over the past five years the company has invested heavily in R&D and production, and thus the company is still not profitable generating negative free cash flow of $240mn in the past 12 months.
Quarterly Outlook
Chief Investment Strategist
Quarterly Outlook
Head of Fixed Income Strategy
Quarterly Outlook
Chief Investment Strategist
Quarterly Outlook
Chief Investment Strategist
Quarterly Outlook
Head of Commodity Strategy
Quarterly Outlook
Chief Investment Strategist
Quarterly Outlook
Chief Investment Strategist
Quarterly Outlook
Chief Investment Strategist
Quarterly Outlook
Head of Fixed Income Strategy
Quarterly Outlook
Head of Commodity Strategy
Disclaimer
The Saxo Bank Group entities each provide execution-only service and access to Analysis permitting a person to view and/or use content available on or via the website. This content is not intended to and does not change or expand on the execution-only service. Such access and use are at all times subject to (i) The Terms of Use; (ii) Full Disclaimer; (iii) The Risk Warning; (iv) the Rules of Engagement and (v) Notices applying to Saxo News & Research and/or its content in addition (where relevant) to the terms governing the use of hyperlinks on the website of a member of the Saxo Bank Group by which access to Saxo News & Research is gained. Such content is therefore provided as no more than information. In particular no advice is intended to be provided or to be relied on as provided nor endorsed by any Saxo Bank Group entity; nor is it to be construed as solicitation or an incentive provided to subscribe for or sell or purchase any financial instrument. All trading or investments you make must be pursuant to your own unprompted and informed self-directed decision. As such no Saxo Bank Group entity will have or be liable for any losses that you may sustain as a result of any investment decision made in reliance on information which is available on Saxo News & Research or as a result of the use of the Saxo News & Research. Orders given and trades effected are deemed intended to be given or effected for the account of the customer with the Saxo Bank Group entity operating in the jurisdiction in which the customer resides and/or with whom the customer opened and maintains his/her trading account. Saxo News & Research does not contain (and should not be construed as containing) financial, investment, tax or trading advice or advice of any sort offered, recommended or endorsed by Saxo Bank Group and should not be construed as a record of our trading prices, or as an offer, incentive or solicitation for the subscription, sale or purchase in any financial instrument. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, would be considered as a marketing communication under relevant laws.
Please read our disclaimers:
- Notification on Non-Independent Investment Research (https://www.home.saxo/legal/niird/notification)
- Full disclaimer (https://www.home.saxo/en-gb/legal/disclaimer/saxo-disclaimer)