Why Is Exact Sciences Stock Trading Higher On Monday?

Core Insights - The Centers for Medicare & Medicaid Services (CMS) has finalized payment determinations for the 2025 Clinical Laboratory Fee Schedule, including a significant reimbursement increase for Exact Sciences Corp's Cologuard Plus test [1][2]. Group 1: Reimbursement Changes - The reimbursement for Cologuard Plus will increase by 16% compared to the first-generation Cologuard test, raising the rate from $509 to$592 [2]. - The new reimbursement structure for Cologuard Plus will consist of three times the fee for methylation analysis of Septin-9 ($192 x 3) plus the fee for a FIT test ($15.92) [3]. Group 2: Financial Implications - This pricing adjustment is expected to take effect for Medicare volumes upon the test's launch in late Q1 or early Q2 of 2025, with immediate reflection in Medicare fee-for-service volumes [3]. - The decision is anticipated to support a moderate pricing boost starting in 2025, potentially adding at least 300 basis points to Cologuard's growth rate, which is projected to be around 15% overall [6]. Group 3: Market Reaction and Future Outlook - Exact Sciences is likely to renegotiate commercial contracts for higher pricing, which may be implemented gradually over the coming quarters and years [4]. - Following the announcement, EXAS stock rose by 7.60%, reaching $59.33 [7].