EXAS -Big Sell-Off on the News
Exact Sciences (EXAS) was down 20% today after presenting its first validation data on the performance of its experimental, non-invasive colorectal cancer test. As of midday trading the stock was around $6.90 on huge volume over 5.5 M shares. The stock took off from $6.25 around Sep 22 and was at $5 on Sep 1. Considerable momentum was generated for the EXAS stock as the Company made the rounds at various investors meetings and even a mention by Cramer on CNBC at a price of $8.40. Although the results of this study met expectations, and was covered extensively by national media, traders and investors were ready to “sell on the news”.
The non-invasive Cologuard /TM sDNA stool test for detected 64% of colorectal pre-cancers and 85% of cancers.The study was conducted in collaboration with the Mayo Clinic and examined more than 1100 patient samples. The results were presented at the Special Conference for Colorectal Cancer held by the American Association for Cancer Research. This was the first validation study of the experimental test. The Company will begin clinical trials next year.
The stock is up 2.5% today to $8.57 on 1.5M shares as of 12:44p prior to the announcement and has risen from the $3.50 level in July. Trading is now halted. The short interest is 3.3M shares with three days to cover.