Exact Sciences ($EXAS) is on a money-raising tear as the company's major clinical trial involving its non-invasive, stool-based colorectal cancer diagnostic test heads toward the finish line some time this year. Plans call for raising $50.2 million from an underwritten public offering of 5.5 million shares of common stock. Shares will be priced at $9.75 a piece, with the offering slated to close by Aug. 13.
In announcing the stock offering, Exact didn't disclose how it will spend the cash infusion. But company President and CEO Kevin Conroy offered clues when discussing the company's 2012 second-quarter earnings at the end of July. Conroy noted in a statement that the Madison, WI company's non-invasive, Cologuard colorectal molecular diagnostic cancer screening test is the company's "top priority," as the DeeP-C clinical trial for the product heads toward completion this year.
And as part of that effort, Conroy said the company is intensifying its "operational and commercial preparations" to make sure it can hit ground running once the test gains regulatory approval.
Exact generated $1 million in revenue during its 2012 second quarter, the same as in 2011. But net losses soared to $14.8 million, up from a $6.6 million net loss in the 2011 second quarter. The higher amount of red ink stems from escalating operating expenses from the company's ongoing clinical trial for Cologuard. As of June 30, Exact said it had about $70.9 million in cash, cash equivalents and securities on hand as of June 30, down from $93.4 million as of Dec. 31, 2011.
- read the fundraising announcement
- revisit Exact's Q2 release