Pac Edge shares jump to 2-month high on US vet supply deal
By Paul McBeth
Feb. 29 (BusinessDesk) - Pacific Edge shares jumped to a two-month high after the bladder cancer test maker signed a supply deal letting it market its Cxbladder product to the US Veterans Administration, the nation's biggest integrated health care system.
The shares climbed 30 percent to 52 cents, the highest level since Dec. 31 after the Dunedin-based company said it's signed a Federal supply schedule agreement with the VA, meaning 8.8 million veterans enrolled with the system can access Pacific Edge's Cxbladder test. The deal will also see the test available at 150 Department of Defense facilites across the US.
"The VA is one of our targeted three large customers for this market and could eventually become one of our largest customers in the US," chief executive David Darling said in a statement. "This contract adds to our commercial momentum in the United States and increases our penetration of this key market."
Pacific Edge is chasing US sales to tap the world's largest healthcare market where there are more than 10,000 urologists, and has signed up a series of health provider networks. Last year it was forced to compensate shareholders after it was found to have probably breached continuous disclosure rules when announcing new US contracts in 2013.
The company also said it's expanded its US sales team and expects to release new developments on the bladder test in the that country later this year.