We want answers! Why is the titanic sinking!!!

Madison Mayor Paul Soglin wants answers following Exact Sciences' stock drop
Following a sharp plunge in Exact Sciences Corp. stock, Madison Mayor Paul Soglin wants to know whether it will impact the major Judge Doyle Square project the city just agreed to help fund.

The one-day, 46-percent drop in the Madison biotech company's shares came last Tuesday, when the U.S. Preventive Services Task Force issued a report regarding Exact Sciences’ Cologuard, a non-invasive, DNA-based stool test. The task force classified it as an “alternative” test instead of a “recommended” one for colorectal cancer screening, and the company's shares dropped from an $18.35 close the day before to less than $10 on Tuesday.

That drop raised serious questions among critics about the success of the Judge Doyle Square project, a massive redevelopment of two downtown blocks that would locate Exact Sciences headquarters on the same block as the Madison Municipal Building and add parking, a hotel and retail space.

City Council approved a development agreement for the project in late Septemberwith Exact Sciences and developer JDS Development, a joint venture of Majestic Realty and Hammes Co. The city agreed to pay $46.7 million toward the private elements of the project, including $12 million toward Exact Sciences as long as it creates 300 living-wage jobs at the new headquarters by the July 2017 occupancy date and 400 jobs by January 2019.

Immediately following the news, Soglin said he didn’t think the drop in shares was relevant.

“It’s a result of a change in classification and it’s not a final decision,” Soglin said then. “We don’t see that it changes Exact Sciences’ hiring, which is what’s critical to this decision.”

Now, he’s asking for more information from the company and developer to make sure that’s true.

The letter sent Wednesday to Hammes Co. president Bob Dunn and Exact Sciences CEO Kevin Conroy asks the two companies what impact this decision has on Exact Sciences’ future as a business and on Judge Doyle Square. Does the scale of Exact Sciences’ plans change? Does the timing or number of jobs created change? And what is Exact Sciences prepared to commit to at the present time?

On the financial end, Soglin asks what the position is of the equity partners and lenders and whether this information affects any of those financial commitments. Under the development agreement, JDS Development is slated to bring $89.2 million in borrowing and $44.4 million in equity to the project.

Soglin also asks what the task force’s preliminary decision means for the Exact Sciences business model for Cologuard, what the company’s plans are to appeal the decision and what the likelihood is that the decision would be amended. The task force will have a 30-day public comment period and issue a final recommendation in 2016.

Dunn and Exact Sciences spokesman JP Fielder could not be immediately reached for comment.

Soglin is requesting a response by Wednesday, Oct. 28, in order for his office and the city’s negotiating team to review any impacts they identify.

 

Have a few extra assignments to make me a better rep. What's the difference between considering and motivating?

 

Yes
Our company
Understands

We want
Everyone to
Realize that
Exact is here to stay!

A stock fluctuation is of
Little worry to only a
Limited population.

Let me be clear.
It is vital that
Everyone continue to
Do their job.

Thanks for your
Ongoing support.

 

Lay off the drugs sunny

 

LOL if it's Brown flush it down if it's yellow let it mellow. Clearly Brown is being flushed down and can't be saved. Grab your flotation device and head to the life rafts . The ship is going down and has been hit by a U Boat torpedo.