EXACT’s total revenues increased due to strategic relationship with Genzyme Corp. Exact in January entered into an intellectual property transaction with Genzyme that generated $17.2 million in cash. The $17.2 million from Genzyme will be recognized as revenue over 20 quarters as a non-cash allocation.
Operating expenses of the company for the first quarter of 2009 were $4.9 million, compared to $2.7 million for the same period of 2006. The increase in operating expenses was determined by expenses associated with the Genzyme transaction, and by severance and stock-based compensation expenses related to the recently announced senior management changes.
The company ended the first quarter of 2009 with cash, cash equivalents and marketable securities of $20.6 million, compared to $4.9 million at December 31, 2008. The increase was due to a $17.2 million increase in deferred revenue associated with the Genzyme transaction.
“We are excited about setting a new strategic direction for Exact Sciences, one focused on simultaneously creating value for both patients and shareholders,” said Kevin T. Conroy, president and chief executive of the company, “We have a straight shot to achieving our strategic goals and creating shareholder value by focusing intently on product development and clinical trial preparation.”