Exact Sciences stock plunges following report
A preliminary report issued Tuesday by the U.S. Preventive Services Task Force (USPSTF) was responsible for a steep drop in the value of shares of Exact Sciences stock.
Exact’s stock prices dropped nearly 50% after the release of the USPSTF’s draft report that recommended the Madison-based biotech company’s non-invasive, colon cancer screening test, Cologuard, be used as an alternative test, rather than one of the main screening tests for the disease.
The news comes on the heels of the Madison Common Council deciding to move forward with the $200 million development of Judge Doyle Square, which includes a new downtown headquarters for Exact Sciences. As part of the deal, which calls for $46.7 million in public funds, Exact agreed to create at least 400 jobs at the new site by 2019.
Exact Sciences chairman and CEO Kevin Conroy stood firm behind his company’s product and said he’d speak to the federal panel and encourage them to revise their recommendation.