Pacific Edge recently lost coverage for its test under the US Medicare health insurance scheme. Photo: Supplied / Pacific Edge
Cancer testing company Pacific Edge has posted another sizeable full year loss and will tap investors for more capital as it battles to regain federal health insurance coverage in its key US market.
Key numbers for the 12 months ended March compared with a year ago:
- Net loss $29.9m vs $29.5m
- Revenue $21.8m vs $23.9m
- Cash reserves $22.6m vs $35.9m
- Nil dividend
The Dunedin based company held its loss steady as it cut costs and looked to expand sales of its bladder testing technology into new sectors and markets.
The company has been hit recently by losing coverage for its test under the US Medicare health insurance scheme, which accounted for about 60 percent of revenue.
It has been fighting for the past two years to retain coverage, and is reapplying for coverage supported by new clinical evidence and acceptance of its testing in medical guidelines of professional bodies.
"The robust evidence emerging from our clinical evidence programme is shifting clinical sentiment towards the broader adoption of our tests in the US and further afield. We are determined not to lose that momentum," chairperson Chris Gallaher said.
He said the company planned to raise $20m by selling new shares, with selected investors to be offered $15m and the balance to be offered to existing shareholders. The new shares would be offered at 10 cents each compared to its last traded price of 8 cents.
"The new capital will support the company and its operations for over 12 months, giving Pacific Edge the ability to grow testing volume as we work to regain coverage."
The company has staked its future to the US market but said it would also look to extend the use of its tests in New Zealand as well as seeking new markets Latin America and South-East Asia.
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