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Exact Sciences Corporation Message Board

  • cheerleader1002001 cheerleader1002001 Mar 29, 2014 1:37 PM Flag

    EXAS is Now an Acquisition Target

    With FDA approval, EXAS is now an easy acquisition target by a large pharma or medical diagnostics Company that is looking to bolster organic growth. Just look at some of the market-caps out there for big players in the diagnostics business like Roche. Roche alone commands a market-cap of $127 BILLION and can easily use their share price as currency.

    They could make a $4 Billion Dollar offer for EXAS and it wouldn't even move the needle of their capital structure. Anyone recall that legacy blood testing company GenProbe being bought out by Hologic for $3.7 Billion back in April of 2012?

    Does the name Hologic sound familiar???

    It should.
    They bought out the CEO of Exact's previous company "Third Wave".

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    • Too much dangerous for short sellers, for little profit they are playing with fire. The day acquisition news comes and EXAS will open at $25 for sure. Down side risk is only $1-2. However, upside risk is more then 4 times from the current price. I read the company profile and noticed 100% FDA approval sometime coming soon.

      Sentiment: Strong Buy

    • Multiply 25 million by $25 for a starting estimate of cost to cover. Quite a risk to sit on.

      • 1 Reply to drc388
      • Cheerleader is right.
        Just take a look at some of the market-caps that the biotech universe trades at.
        Several are well over $100 Billion. Many are $30, $40, $50 Billion.
        Roche is an obvious acquirer.

        If a large company wants to increase their organic growth, acquiring EXAS for a few billion would be like picking up the lunch check for a bunch of Beverly Hill housewives.

    • Right now, what companies do you think would be a good fit for EXAS? What about the major testing outfits like Quest Diagnostics? What would a buyout price look like right now? $18 PPS? Good question.

    • However easy it is to see how the financial side of a buyout might work, it isn't going to happen unless EXAS wants it to. So far the company has gone a long way toward indicating they want to bring their product to market themselves, and they've taken steps to protect themselves from a hostile takeover.

      Since they have other genetic markers for, what are now virtually undetectable digestive system cancers on deck, I think they've got a pretty good idea that they can be a major diagnostics company in their own right. The bids would have to be pretty high to buy all that

      Sentiment: Buy

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