Pacific Edge

NZ: PEB

NZD$122.6m market cap

NZD$0.25 last close

Pacific Edge develops and sells a portfolio of molecular diagnostic tests based on biomarkers for the early detection and management of cancer. Tests utilising its Cxbladder technology for detecting and monitoring bladder cancer are sold in the US, New Zealand and Australia.

Investment summary

Pacific Edge develops and sells a portfolio of molecular diagnostic tests based on biomarkers for the early detection and management of cancer. Tests using its Cxbladder technology for detecting and monitoring bladder cancer are sold in the US, New Zealand and Australia. The company recently announced results for H119, including 42.7% growth in Cxbladder sales compared to H118. Importantly, in October, the company received notification of the Cxbladder test national reimbursement rate (US$760) from CMS. Once the company receives Local Coverage Determination (LCD), Pacific Edge will be able to get reimbursement for Medicare claims and will enable reimbursement and negotiation for payment on 14,000 tests previously performed on CMS patients. The LCD process is ongoing and once completed will be a major driver of future growth.

Y/E Mar
Revenue (NZ$m)
EBITDA (NZ$m)
PBT (NZ$m)
EPS (c)
P/E (x)
P/CF (x)
2017A 4.4 (22.3) (22.4) (5.9) N/A N/A
2018A 4.6 (19.5) (19.6) (4.5) N/A N/A
2019E 5.0 (17.6) (17.5) (3.5) N/A N/A
2020E 10.2 (13.2) (13.2) (2.6) N/A N/A
Last updated on 22/05/2019
Industry outlook

Molecular diagnostics is a growing, but increasingly competitive field. Lead time from the initiation of user programmes to payment can be long.

Last updated on 22/05/2019
Sector
Healthcare
Share price graph
Balance sheet
Forecast net cash (NZ$m) 8.5
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual (15.8) (22.6) (17.2)
Relative* (17.8) (28.8) (28.6)
52-week high/low NZ$0.4/NZ$0.2
*% relative to local index
Key management
Christopher Swann Chairman
David Darling CEO