Exact Inventory Rises as Pfizer Sales Agreement Changes ‘Positive’, Analyst Says

Shares of Exact Sciences Corp. EXAS,
was up 8.0% in afternoon trading on Wednesday after the molecular diagnostics company said it was taking over sales of its Cologuard home colon cancer screening test from Pfizer Inc. PFE,
and said it was discussing “material changes” to their promotional agreement with Pfizer. The company said it learned in late August that Pfizer had cut sales positions in support of its company that was to sell Cologuard, so Exact offered those laid-off sales reps jobs. Exact said it added about 400 sellers in September, bringing the total to more than 850 sellers. The company said it expects those reps to be “more productive” than they were when they were with Pfizer, because they’ll focus entirely on Cologuard sales, and because of COVID-19, Pfizer didn’t conduct face-to-face sales calls in 41 states. policies, which were different from Exact’s policies. Benchmark analyst Bruce Jackson reiterated his buy recommendation and price target of $165 for Exact’s stock, saying the changes announced were “generally positive for Exact.” The stock is down 14.5% in the past three months as the S&P 500 SPX,
won 5.4%.