Pacific Edge

NZ: PEB

NZD$115m market cap

NZD$0.22 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, Australia and Singapore. The company recently announced results for 2019, including 12.3% growth in Cxbladder sales compared to 2018. Pacific Edge is in the process of gaining inclusion in the CMS’s local coverage determination (LCD), which would enable reimbursement and negotiation for payment of more than 17,015 tests previously performed on patients covered by CMS as of the end of FY19. The company has completed two of the three components necessary for national reimbursement in the US, namely CPT codes and a national price of US$760 per test.

Y/E Mar
Revenue (NZ$m)
EBITDA (NZ$m)
PBT (NZ$m)
EPS (c)
P/E (x)
P/CF (x)
2018A 4.6 (19.5) (19.6) (4.5) N/A N/A
2019A 4.8 (17.8) (17.8) (3.7) N/A N/A
2020E 5.9 (17.5) (17.4) (3.4) N/A N/A
2021E 24.5 0.0 (0.2) 0.0 N/A 146.7
Last updated on 14/08/2019
Industry outlook

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

Last updated on 14/08/2019
Sector
Healthcare
Share price graph
Balance sheet
Forecast net debt (NZ$m) 3.7
Forecast gearing ratio (%) 134
Price performance
%
1m
3m
12m
Actual 7.1 (8.2) (28.6)
Relative* 6.8 (12.6) (37.9)
52-week high/low NZ$0.4/NZ$0.2
*% relative to local index
Key management
David Darling CEO