Exact Sciences changes plans on Madison HQ

Exact Sciences has scrapped its plans to move its headquarters to downtown Madison, instead starting discussions on a plan to expand its facilities at University Research Park.

The company’s expansion plans faced questions after disappointing news last month from a federal panel, which didn’t recommend Exact Sciences’ Cologuard product as a colon cancer screening option and instead listed it as an alternative.

But Kevin Conroy, the company’s CEO and chairman, said at a news conference Monday the decision wasn’t tied to the stock drop, but to the company potentially growing slower due to the panel’s action.

The “hard reality,” Conroy said, was that Exact Sciences likely couldn’t allocate about two years of rent in escrow as the downtown plan required — a number that amounted to $15 million.

“When facts change, your plans, especially being in business, have to change with it. … It just doesn’t make a lot of sense to do that if the world becomes a little less certain than it was before, and that was really the driving factor in the decision, not the stock price,” Conroy said.

Exact Sciences is now beginning discussions with the city of Madison and URP about building a new tower at URP, which would connect with the company’s research and development building.

Details on what the development would look like — and its financing — are still in the works, but it would keep the company’s headquarters in Madison.

Madison Mayor Paul Soglin said although he preferred bringing Exact Sciences downtown, the company’s new plans are a “darned good” alternative.

The city of Madison is now asking the four developers who had responded to the RFP for development of the area surrounding Monona Terrace to go back to the drawing board. The developers will be able to update their proposals and bring them to the city, Soglin said.

Conroy, meanwhile, said he remains hopeful about the company’s growth because its Cologuard product is one “that patients want and physicians are actively prescribing.” He also said Exact Sciences will work with the city and URP to establish a “biotech campus” at URP.

“The chance to build a headquarters downtown was incredibly appealing, but an opportunity to bring our team together on a campus where Exact Sciences started, in the heart of this state’s biotech corridor, is a prudent decision for our company and this community,” Conroy said.

Stock in Exact Sciences closed 19 percent higher Monday at $9.93 per share, a $1.60 jump.

See the release