The bladder cancer diagnostic firm Pacific Edge listed on the NZX 20 years ago, but has not yet made a bottom-line net profit. Photo: Supplied / Pacific Edge
Cancer diagnostics company Pacific Edge has posted a deeper loss as it invested more money to drive growth.
Key numbers for the 12 months ended March, compared with a year ago:
- Net loss $27m vs $19.8m
- Revenue $26.1m vs $13.9m
- Operating revenue $19.6m vs $11.4m
- Operating expenses $53.1m vs $33.7m
- Cash reserves $77.8m vs $105.4m
- No dividend
Its net loss was up by more than a third, driven by higher operating expenses as the company focused on growing the business, particularly in the United States.
The company, which specialises in bladder cancer testing, said operating revenue - the income generated from its Cxbladder test sales - increased 71 percent to $19.6 million.
Revenue growth followed a 39 percent increase in commercial tests, with US test numbers growing 46 percent.
It said the weaker New Zealand dollar had also helped operating revenue.
Total revenue, which included government grants and other income, nearly doubled.
However, there was little new detail about the proposed changes to Medicare payments in the US, which could result in its Cxbladder tests not being covered by the scheme.
Pacific Edge chair Chris Gallaher said the company was successful in implementing the strategic priorities it outlined a year ago to drive the adoption of Cxbladder.
"Our efforts have been rewarded with a strong increase in commercial test volumes in the US, our most important market; increased Cxbladder adoption by US clinicians and a significant improvement in operating revenues," he said.
Chief executive Peter Meintjes said 2023 was a year of "enormous change" for the company.
"We have scaled the global team to execute on the immediate opportunities with new hires in direct sales, marketing, and sales support," he said.
Pacific Edge did not provide any guidance for 2024.
"The lack of clarity over continued Medicare coverage continues to represent a headwind for the company, but we remain confident and optimistic about our outlook," Meintjes said.