With products for urological and colon cancers already on the market, MDxHealth and Exact Sciences (NASDAQ: EXAS) have already demonstrated their respective expertise in the development of epigenetic molecular diagnostics. The new five year collaboration announced with Exact will enable MDxHealth to leverage its epigenetic expertise outside its core urological focus, as well as build on a decade long relationship with Exact. Exact's acquisition of key MDxH patents related to Exact's Cologuard colon cancer faecal screen will bring some expected royal payments forwards, strengthening the company's balance sheet as it rolls out its pipeline of urology diagnostics. We reiterate our OUTPERFORM recommendation and our target price of €6.50.
