Tuesday 29th May 2018
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Pacific Edge narrowed its full-year loss by 13 percent on improving revenue as more urologists and healthcare organizations adopt its Cxbladder cancer diagnostics tests.
The Dunedin-based company reported a loss of $19.7 million in the year to March 31 or 4.5 cents per share versus a loss of $22.6 million in the prior year or 5.7 cents per share after the prior year was restated in line with the NZ IFRS 15 revenue accounting standards. This means that Pacific Edge now only recognizes revenue for its US customers when cash payment is received in the financial statements.
Under the new standards, total revenue was $5.0 million versus $4.7 million in the prior period, a lift of 7 percent. Operating revenue lifted 6 percent to $3.4 million.
The company has four non-invasive, accurate and simple to use molecular diagnostic tests for the detection and management of bladder cancer.
It reported a 28 percent increase in laboratory throughput to 14,446 tests of which 82 percent were billable tests. In the past 12 months, Pacific Edge said it has progressed commercial negotiations with targeted large-scale healthcare organisations in the US, including Kaiser Permanente and the Centers for Medicare and Medicaid.
However, both are taking longer than expected to complete, it said, adding that "Pacific Edge has little to no control over the decision making processes and timings of these large organisations."
"The multi-billion dollar US healthcare market remains our most significant opportunity and we are seeking to position Cxbladder as the preferred diagnostic test of choice for physicians in a market that offers more than 5 million potential test opportunities per annum," said chairman Chris Gallaher.
Pacific Edge had $16.2 million in cash and cash equivalents at March 31, including proceeds from the capital raise in November 2017. Pacific Edge raised $21.3 million in a deeply discounted rights issue, which it said would fund its goal to break even in the 2019 financial year.
Looking ahead, it remains confident that cash sales will grow progressively over FY19 and is focused on reaching a cash flow breakeven position. It said it would provide updated guidance later in the calendar year.
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