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Pacific Edge losses up as it grows in US

NZ Newswire logoNZ Newswire 23/05/2017 Paul McBeth

Bladder cancer test developer Pacific Edge has restated its annual loss © File photo Bladder cancer test developer Pacific Edge has restated its annual loss Dunedin's Pacific Edge has widened its annual loss as the cancer diagnostic company's focus on expanding its US footprint drove a 62 per cent boost in sales.

It posted a net loss of $21 million in the 12 months ended March 31, widening from a loss of $15.7m a year earlier.

Operating revenue climbed to $8.1m from $5m a year earlier, a slower increase than expected as Pacific Edge took longer to close deals with large US health administrators.

It now has both the Veterans Administration and TRICARE Health Plan Network under contract, which provide cover to 20 million US military personnel, is in commercial talks with Kaiser Permanente which are expected to close shortly, and is still chasing regulatory approval for patients to get reimbursed under the Centers for Medicare and Medicaid.

The company had made strong commercial progress in the year, particularly with targeted scale customers, says chief executive David Darling.

"We are seeing increasing demand and uptake from both private and public healthcare providers and expect to see a ramp up in sales from new and existing customers in FY18."

Pacific Edge got a two-year extension to its Callaghan Innovation research grant to fund its suite of cancer detection products and raised $8.8m earlier this year to help pay for the US drive and it expects to have all four Cxbladder products fully launched in the US by 2018.

The shares fell 1.8 per cent to 56 cents at the opening of the NZX on Wednesday, having slipped 3.4 per cent so far this year.

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