Source: Radio New Zealand
Pacific Edge’s revenue dropped to $11.5 million from $21.8 million the year earlier, reflecting the Medicare cut. Supplied / Pacific Edge
Cancer diagnostics company Pacific Edge is aiming to raise up to another $24 million as it continues to battle to regain Medicare coverage in the United States, get reimbursement for its tests, and position the business for growth.
The company’s battle was reflected in its financial results for the year ended March, with a bigger net loss of $35.7m compared with a $29.9m loss last year.
Revenue dropped to $11.5m from $21.8m the year earlier, reflecting the Medicare cut, with testing at US labs falling to 18,784 tests from 23,885 tests the year earlier.
The case for more capital
“The new capital we are seeking today will … support the Company and its operations to regain Medicare coverage and assist our move towards the broader adoption of our tests by commercial payers in the US and further afield,” chair Simon Flood said, adding the company had already made progress.
“Backed by robust clinical evidence, the endorsement of our tests in clinical guidelines, and growing momentum in clinical opinion, we have firmly established ourselves as the first mover and market leader in bladder cancer diagnostics.
“We are determined not to lose that momentum. All of Pacific Edge’s Directors intend to take part in the equity raising. We encourage you to support this offer.”
Second round of funding
The company raised $20m and cut costs last year to help it gather scientific evidence to convince Medicare authorities to reinstate coverage, as well as get payment coverage for its tests.
The latest equity offer consisted of a placement of $18m new ordinary shares to eligible investors at 17 cents per share and an offer of $6m new shares to retail investors with an ability to accept over subscriptions.
The case for support
Pacific Edge expected Medicare administrative contractor Novitas to release a draft documentation to support the reinstatement of Medicare approval before September 2026.
Pacific Edge chief executive Dr Peter Meintjes said reimbursement would assist with increasing revenue and reducing average monthly cash burn below the current target of $2.5 million per month for FY 27.
“The capital we are seeking today will set a clear path to reimbursement for our tests … support continued investment in our clinical evidence and invest in product innovation,” he said.
“We are excited by the growth we see ahead, and we encourage shareholders to support us to take advantage of these opportunities.”
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– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand