Pacific Edge shares surge after deal with US FedMed
Pacific Edge shares surge after it signs agreement with FedMed, gaining access to 40M Americans
By Tina Morrison
Oct. 16 (BusinessDesk) –Shares in Pacific Edge surged, making the stock the best performer on the New Zealand exchange today, after the cancer diagnostic company said it signed an agreement with US healthcare administrator FedMed which gives 40 million Americans access to its Cxbladder test to diagnose bladder tumours.
Shares in Dunedin-based Pacific Edge jumped 36 percent to a five-month high of 68 cents. The deal puts Pacific Edge’s Cxbladder in front of FedMed’s preferred provider network in the US, including more than 550,000 physicians, 4,000 hospitals and 60,000 ancillary care providers.
The agreement comes after Pacific Edge in March gained Clinical Labour Improvement Amendment registration for its own US diagnostic laboratory, allowing the company to start using its patented Cxbladder test in the world’s largest health market. Negotiations are underway with other provider networks and insurers and integrated health systems Medicare and Medicaid, the company said.
“The building blocks are in place, sales people are active in the market and Pacific Edge remains confident of reaching its target of revenues of $100 million from Cxbladder sales in the USA within five trading years,” chief executive David Darling said in the statement.
Pacific Edge has published research showing the non-invasive Cxbladder procedure is more successful than current, more costly invasive methods such as cystoscopy. Commercialisation of the test comes after 10 years and some $28 million of capital investment on Cxbladder and a range of other diagnostic tests to be rolled out in the future.