Pacific Edge Reports Continued Strong Revenue Growth Despite Ongoing Impact Of Covid-19
Cancer diagnostics business, Pacific Edge Limited (NZX/ASX: PEB) has reported continuing growth for the six months ended 30 September 2021 (1H22), with key performance metrics significantly ahead of the same time last year, driven by reimbursement milestones, increasing insurance coverage and adoption by urologists and healthcare organisations.
CEO of Pacific Edge, David Darling, commented: “The momentum seen in 2H21 has continued with growth in test volumes, sales and cash receipts. This is particularly pleasing given the resurgence in Covid-19 restrictions due to the spread of the Delta variant, which further restricted access to clinics and urologists for both patients and for our sales people in both the U.S. and New Zealand. As Covid-19 restrictions are lifted and access improves, we expect to see a positive impact on our business.
“With a restructured balance sheet and significant cash resources now in hand, we continue to focus on scaling up our commercial operations to accelerate our growth in the U.S. and other targeted markets. We continue to make good progress as we position our Cxbladder suite of tests as the diagnostic product of choice for urologists and patients. The clinical evidence supporting the outperformance of our products, growing endorsement by key opinion leaders and our first mover advantage all serve to provide a strong competitive advantage for our business.”
In particular, the recent clinical papers published in the leading Journal of Urology, highlight a pivotal shift in clinical utility from, firstly, an increase in clinical resolution from the combined use of multiple Cxbladder tests for each patient presenting with haematuria and, secondly, the gain in clinical utility from Pacific Edge’s PIHSS for Company Announcement 25 November 2021 management of patients outside the clinic. These publications are expected to provide added impetus to the adoption of Cxbladder by urologists and healthcare organisations.
Unaudited results for the six months ended 30 September 2021 (1H22)
Summary of performance for the period (% changes compared to prior comparative period (pcp)):
• Total revenue increased 66% to $6.7m
• Operating revenue from test sales increased 62% to $5.4m
• Total Laboratory Throughput increased 62% to 11,136 tests
• Commercial Test volumes increased 64% to 9,192 tests
• Cash Receipts from Customers increased 110% to $5.4m
• Total operating expenses increased 41% on pcp to $15.7m
• Net Loss After Tax increased 27% to $9.0m
• Net cash, cash equivalents and short-term deposits were $91.6m (which excludes the $23.5m raised in the
Retail Offer completed in October 2021)
• Growth in the US sales force from 16 to 28 (+75%) and the addition of two new sales territories
• Publication of clinical evidence key to supporting use of multiple Cxbladder products and Pacific Edge’s
Patient In-Home Sampling System (PIHSS)
• Conducted successful $103.5m capital raise and dual listed on ASX
• Well positioned to capitalise on commercial milestones as Covid-19 restrictions ease, with a strong balance
sheet and scaled up operations in the U.S.
View the full announcement, investor presentation and financial statements here: https://www.nzx.com/announcements/383542