By Kathleen Gallagher of the Journal Sentinel
Exact Sciences Corp. was one of the top-performing stocks in Wisconsin over the last year.
And that was despite reporting losses totaling $60 million over the 39 months ended March 31.
Analyst John Collopy uses just one word to describe the Madison biotech company's losses: "Awful."
The dismal financial results didn't stop Exact's stock from rising 39% so far this year. The company also was the sixth-best performing Wisconsin-based stock for the 12 months ended June 30, according to a Bloomberg Financial Markets report provided by Landaas & Co. A $1,000 investment in Exact at the beginning of June 2011 would have grown to more than $1,246.51 by the end of the month,
Exact also has raised $117.4 million in stock offerings in the last three years.
"Despite all the travails they have gone through from a profit-and-loss standpoint, some pretty sophisticated investors are willing to put money into this company," said Collopy, director of research for Oshkosh-based brokerage firm Carl M. Hennig Inc.
The losses, and the cash infusions from investors, are part of the well-worn pathway biotech companies follow.
Biotechs must raise enormous sums of money to develop, clinically validate and win regulatory approval for their products. Sales and profits come later.
Exact has been on that pathway longer than most.