Medical device and diagnostic giants Exact Sciences (EXAS
72.21, +6.56, +9.99%) and Luminex (LMNX 23.50, +0.40, +1.73%)
trade decently higher on Monday after the duo gave better than expected
preliminary results for their fourth quarters.
Madison, Wisconsin-based Exact is best known for its Cologuard testing. Cologuard was approved by the FDA in August 2014 and is indicated to screen adults of either sex, 50 years or older, who are at average risk for colorectal cancer. Last year (FY2017) Cologuard revenue increased 168% to $266 mln as 571,000 patients were screened with the technology. Austin, Texas-based Luminex reported declining Assay revenues last quarter, specifically down 11% to $33.7 mln. However, including the divested LabCorp business, Assay sales were up 6%. Luminex shares, on the whole, reacted negatively to last quarter’s print and guidance, which called for in-line Q4 and FY18 revenues, though the brunt of the stock’s decline since November has been closely tied to broader market losses.
The news on the names today, then, has both stocks higher on a day when the broader market also enjoys slight gains.
Exact now anticipates revenues for the fourth quarter to come in ahead of market expectations at $142.5-$143.5 mln (up from the prior ~$123.5-$128.5 mln). This bump also moved 2018 revenue expectations to $454-455 mln (up from the previous $435-440 mln guidance given during the late-October Q3 print.)
Exact also announced the completion of approximately 292,000 Cologuard tests during the fourth quarter, which represents 66% growth from the same period of 2017. The company expects approximately 94% of patients who completed a Cologuard test during the fourth quarter to have no out-of-pocket costs.
As for Luminex fourth quarter revenues are now slated to come in slightly ahead of market expectations. The company stated it expects revenues in the quarter of about $81 mln (up from the prior $77.0-79.0 mln expectation) and to exceed $315 mln for the full-year ended 2018, near the top of the previously communicated guidance range of $310-316 mln.
Luminex’s fourth quarter outlook holds that total Licensed Technologies Group revenue grew 23% to more than $41 mln versus last year with total MDx revenue of about $39 mln, declining 11% versus a year ago, inclusive of the departure of about $11 mln of LabCorp non-CF revenue. Total MDx revenue increased by about 21%, excluding the departure of LabCorp.
Also, the company’s MDx sample to answer portfolio increased by 41% to $18 mln in the quarter, and Luminex placed about 60 VERIGENE and ARIES sample to answer molecular systems under contract.
Management gave 2019 guidance for consolidated revenues between $337-343 mln, including revenue from the flow cytometry business purchased from MilliporeSigma and an approximate $35 mln decline in LabCorp purchases of Molecular Diagnostic products.
Luminex plans to report results for the fourth quarter and full year ended December 31, 2018 and provide details around the 2019 revenue guidance on Monday, February 4, 2019. Management will hold a conference call to discuss the operating highlights and financial results on that date, at 4:30 p.m. Eastern time. What’s more, Luminex President and CEO, Homi Shamir, will present at the 37th Annual J.P. Morgan Healthcare Conference to be held at The Westin St. Francis hotel in San Francisco, CA on Wednesday, January 9 at 5:30 p.m. Pacific time.
- OUR VIEW
- LEARNING CENTER