Pacific Edge Limited Analysis

Overview

Pacific Edge Limited (NZX: PEB) is a New Zealand publicly listed, cancer diagnostic company specialising in the discovery and

commercialisation of diagnostic and prognostic tests for better detection and management of cancer. Its Cxbladder suite of

non-invasive, simple to use and accurate diagnostic tests provide actionable results, and better detection and management of

urothelial cancer. The company is developing and commercialising its range of Cxbladder bladder cancer tests globally through

its wholly owned central laboratories in New Zealand and the USA. The company’s products have been tested and validated in

international multi-centre clinical studies.

Performance

The following information was extracted from Pacific Edge Limited's full year results, released on 21 May 2024:

CASH BURN SLOWS; COVERAGE CATALYSTS IN FOCUS

FINANCIAL AND PERFORMANCE HIGHLIGHTS

• Operating revenue increases 22% to $23.9 million; total revenue increases 12% to $29.3 million lifted by a 2% rise in commercial

Cxbladder test volumes in the US market and increased collections.

• Average US Sales Price (ASP) per test increased 18% from US$519 in 2H 23 to US$613 in 2H 24 following improvements in cash

collection and increased volumes from our major private payer Kaiser Permanente.

• Total laboratory throughput (TLT) of Cxbladder tests increases 3% to 32,633 tests, commercial tests increased 2% to 27,347 with the

rate of growth slowing in 2H 24 as the sales team was reduced and further attrition of the team was not backfilled to preserve capital.

• Cash burn reduced in 2H 24 to $11.9 million, down 24% on 1H 24 following reorganization; use of capital tightly focused on long-term

strategic imperatives. Net loss after tax increases to $29.5 million from $27.0 million.

• End of period cash and cash equivalents of $50.3 million down from $62.2 million in September 2023; a runway expected to be

sufficient to support the company through to regaining coverage in the event of a Medicare non-coverage determination.