Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


Pacific Edge first-half loss widens on push for US growth

Pacific Edge first-half loss widens on push for US growth; sales jump 67%

(Correct's year-earlier loss in second paragraph to $7 million from $6.4 million)

By Jonathan Underhill

Nov. 24 (BusinessDesk) - Pacific Edge reported a wider first-half loss as the bladder cancer test company hired more salespeople in the US and spent more on research, sales & marketing.

The net loss was $11.3 million in the six months ended Sept. 30, from a loss of $7 million a year earlier, the Dunedin-based company said in a statement. Operating revenue climbed to about $3 million from $1.8 million.

Pacific Edge shares have gained about 2 percent this year and were last at 53 cents. They jumped about 20 percent on Nov. 14 after the company said a study of its Cxbladder Triage test, used to rule out patients with a low risk of bladder cancer, was evaluated in a large study of patients of not-for-profit US healthcare provider Kaiser Permanente and found to a negative predictive value of 98.5 percent, matching previous studies. Cxbladder Triage only became available in the US late in the first half and the bulk of the sales to date have come from its Cxbladder Detect product. A third product, the Cxbladder Monitor, will become available in the second half.

“We are seeing a steady increase in customer numbers and have a growing number of clinicians trialling and using our products through user programmes, which is an essential part of the clinical adoption cycle," said chief executive David Darling. "We expect to report a strong second half uplift in line with annual trends.”

Operating expenses rose to $15 million from $9.7 million and included $2.93 million for the employee incentive scheme, and research costs of $2.47 million, up from $1.9 million a year earlier. Wages rose 14 percent to $4.2 million.

The company said the first-half loss was in line with its expectations. The majority of revenue comes from existing customers, mostly smaller urologist practices, with no contribution yet from the recent new customers - the Veterans Administration (VA) and Tricare, it said. Pacific Edge said it had to contend with a stronger kiwi dollar in the first half and reduce grant income from Callaghan Innovation as a result of changes to the funding body's growth grant scheme.

In its home market of New Zealand, sales rose 187 percent, it said.



© Scoop Media

Business Headlines | Sci-Tech Headlines


Air New Zealand: Employees Recognised With $1,000 Share Award

The efforts Air New Zealand employees made during one of the airline’s toughest years will be recognised via an award of $1,000 worth of company shares to all permanent employees... More>>

Consumer NZ: Bank Complaints On The Rise, Survey Shows

Nearly one in five Kiwis had a problem with their bank in the past year, Consumer NZ’s latest satisfaction survey finds. Consumer NZ chief executive Jon Duffy said the number of bank customers reporting problems had jumped to 18%, up from 11% in 2020... More>>

Federated Farmers: Applauds UK-Australia Free Trade Deal

News that Australia and the UK have signed a free trade agreement is a promising step forward in the fight against tariffs and protectionism, Federated Farmers says.
"It reinforces the international rules-based trading framework and is important for rural producers and global consumers," Feds President Andrew Hoggard says... More>>

ASB: New Zealanders Missing Out On Hundreds Of Millions In KiwiSaver Government Contributions

New Zealanders have just over a week to ensure they’re eligible for the maximum annual government KiwiSaver contribution... More>>

Stats NZ: GDP Climbs 1.6 Percent In March 2021 Quarter Following December Dip

Gross domestic product (GDP) rose by 1.6 percent in the March 2021 quarter, following a 1.0 percent fall in the December 2020 quarter, Stats NZ said today. "After an easing of economic activity in the December quarter, we’ve seen broad-based growth in the first quarter of 2021... More>>

Reserve Bank: Debt Serviceability Restrictions Added To Policy Toolkit

The Reserve Bank – Te Pūtea Matua and the Minister of Finance have agreed to update their shared Memorandum of Understanding (MoU) on macro-prudential policy and add debt serviceability restrictions to the list of potential tools available... More>>