Is Exact Sciences Stock Halal?
How much of Exact Sciences revenue comes from haram?
Exact Sciences derives its revenue from a range of screening and diagnostic test products that detect multiple types of cancers and Covid-19.
Practical Islamic Finance concludes:
None of Exact Sciences’ revenue comes from anything inherently haram.
Does Exact Sciences rely on interest to operate?
Exact Sciences reports its Interest Income & Expenses as a net value.
According to the company’s annual report for the fiscal year ended December 31, 2020 (Numbers in thousands, U.S. dollars):
Interest Expense (net): $95,983
Total Expenses: $2,049,685
Interest Expense / Total Expense: 4.68%
The following table shows the declining percentage net interest expense makes up relative to total expenses from 2018 to 2020.
| 2018 | 2019 | 2020 | |
| Interest Expense (net) | 5.99% | 5.55% | 4.68% |
Practical Islamic Finance concludes:
Riba is used but not relied upon in Exact Sciences operations.
What is Exact Sciences’ Environmental, Social, and Governance (ESG) impact?
Environment
In 2020, Exact Sciences installed a 30,000-gallon stormwater collection tank in their 169,000-square-foot laboratory, resulting in an energy cost savings of 74%.
Social
Exact Sciences has a high Glassdoor rating of 4.2 out of 5.0 from over 200 current and previous employees compared to a 3.3 average for all other Glassdoor rated companies.
Some compensation and benefits Exact Sciences offers its employees according to its 2020 Sustainability Report are:
- One-to-one match for charitable donations.
- Parental leave for new mothers and fathers.
- Company stock distributions for all new employees and additionally each year.
- A minimum of three weeks of paid time off for all full-time employees, plus sick leave and personal holidays.
Governance
No noteworthy Governance highlights were found.
Practical Islamic Finance concludes:
Exact Sciences has a substantially positive ESG impact.
Comfort Rating
From Exact Sciences’ business, financial, and ESG reviews, Practical Islamic Finance rates Exact Sciences as:
Comfortable to invest in from a Halal perspective.
Sources
UNITED STATES SECURITIES AND EXCHANGE COMMISSION FORM 10-K EXACT SCIENCES CORPORATION