Finding Cancer Early an Exact Science
In the never quest for ten baggers, bio-tech is a favorite hunting ground. While companies that purport to be looking for a cure for cancer run red hot from time to time, maybe something a bit more mundane, such as a company that can find cancer early might be a better play. Hear Ye, Hear Ye, I believe I have a ten bagger on the hook.
Exact Sciences (EXAS): Is near the end of developing a product that might replace FIT and FOBT as the number one screening tool for colorectal and proximate digestive tract cancers. In fact, an early version of the stool based DNA test has already been on the market as a home brew.
Over the past few years, this company has essentially round tripped from $3ish to dimes back to $3ish. Its prior management failed miserably to properly guide the technology to market. Recent clarity on path to FDA approval, deal with Genzyme to stablize the company financially, new and experienced management team including Kevin Conroy from Third Platform, move to Wisconsin near UW and rights deal to research with Hopkins, make this a very interesting long term microcap growth opportunity. While many focus on price per share jumps being imminent (and they might be) as well as the recent round trip run up, the real story here is that the colorectal testing market is huge and that the first to market with a truly effective and non-invasive screening test will garner huge first mover advantage. EXAS is currently in the lead to be that company. I have gradually accumulated shares buying on any no-news price drops.
As with any microcap, the company comes with all the execution and financial risks. However, it appears to me, that Exact stands a strong chance of following in the footsteps of another company this one's founder began years ago for Pap Smears. If that is so, a ten bagger might be conservative.