Pacific Edge says it's on track after posting 1H loss; shares jump

Friday 28th November 2014

Pacific Edge, which makes and markets bladder cancer tests, said its first half loss was unchanged from the year earlier period as increased revenues were channelled into development and marketing of its products, in line with its plans. The shares jumped to a seven week high.

The Dunedin based company posted a net loss of $4.73 million in the six months ended Sept. 30, little changed from the loss of $4.76 million in the year earlier period, it said in a statement. Total revenue soared to $1.6 million from $183,000 a year earlier. While the company didn't break out its expenses, the cashflow statement showed its net outflow of cash widened to $5.9 million, from $4 million a year earlier as its payments to suppliers and employees increased 49 percent to $6.4 million.

Pacific Edge increased its US sales executive team to 12 from four through August and September this year as it seeks to expand the geographic reach of its bladder cancer detection text Cxbladder which it launched in the US in mid 2013. The company is targeting large urology groups and urologists in high density, large urban centres across the US as part of its goal to generate $100 million in gross revenue in the country after five full years of trading.

"This step up for the company is in line with our forecasts," said chief executive David Darling. "It clearly marks our successful transition to an international commercial organisation.

"We now have an established commercial footprint in New Zealand, Australia and the US and are currently identifying other market opportunities, including in South East Asia, which has large and medically sophisticated populations."

The company is currently evaluating the roll out to South East Asian markets including Singapore, Taiwan and Thailand, it said.

Its shares rose 11 percent to 92 cents, after earlier touching 94 cents, the highest level since Sept. 10.

Pacific Edge said it has sufficient funds in place to continue its development and growth strategy in existing markets in the medium term. It had cash and equivalents of $14.7 million at its Sept. 30 balance date.

The company aims to develop a range of products to meet the specific needs for the detection and management of bladder cancer. Following on from the launch of its first product, Cxbladder Detect, which detects the presence of bladder cancer, Pacific Edge says it is on track to launch its Cxbladder Triage next month and expects to launch its Cxbladder Predict product next year and its Cxbladder Monitor in 2016.

"We are progressing well with our FY15 commercial and development activities and are on track to achieve our goals for the year as we look to grow our global presence with a Cxbladder family of products for healthcare professionals in our targeted markets," the company said.

It won't pay a first half dividend.

BusinessDesk.co.nz

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