It's a great result. Just need to find out what costs increased to better understand the results but presumably increasing sales team, dual listing and retail offer contributed
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It's a great result. Just need to find out what costs increased to better understand the results but presumably increasing sales team, dual listing and retail offer contributed
Good news overall - Money coming in, test volumes increasing, supportive feedback in medical journals, more USA sales effort and a push underway into Aust and Asia. Looks to me like a good course plotted and being followed.
Here is the rest of the announcement
Cancer diagnostics business, Pacific Edge Limited (NZX/ASX: PEB) has reported
continuing growth for the six months ended 30 September 2021 (1H22), with key
performance metrics significantly ahead of the same time last year, driven by
reimbursement milestones, increasing insurance coverage and adoption by
urologists and healthcare organisations.
CEO of Pacific Edge, David Darling, commented: "The momentum seen in 2H21 has
continued with growth in test volumes, sales and cash receipts. This is
particularly pleasing given the resurgence in Covid-19 restrictions due to
the spread of the Delta variant, which further restricted access to clinics
and urologists for both patients and for our sales people in both the U.S.
and New Zealand. As Covid-19 restrictions are lifted and access improves, we
expect to see a positive impact on our business.
"With a restructured balance sheet and significant cash resources now in
hand, we continue to focus on scaling up our commercial operations to
accelerate our growth in the U.S. and other targeted markets. We continue to
make good progress as we position our Cxbladder suite of tests as the
diagnostic product of choice for urologists and patients. The clinical
evidence supporting the outperformance of our products, growing endorsement
by key opinion leaders and our first mover advantage all serve to provide a
strong competitive advantage for our business."
In particular, the recent clinical papers published in the leading Journal of
Urology, highlight a pivotal shift in clinical utility from, firstly, an
increase in clinical resolution from the combined use of multiple Cxbladder
tests for each patient presenting with haematuria and, secondly, the gain in
clinical utility from Pacific Edge's PIHSS for management of patients outside
the clinic. These publications are expected to provide added impetus to the
adoption of Cxbladder by urologists and healthcare organisations.
1H FY22 Financial Result Summary
Total Revenue increased 66% to $6.7m and Operating Revenue from Cxbladder
sales increased 62% on the prior comparative period (pcp) to $5.4m. This
record result reflects the continued positive impact from the commercial
milestones achieved in 1H21, particularly LCD inclusion for Cxbladder Monitor
and Cxbladder Triage from 1 July 2020 as well as growing adoption and use by
urologists and healthcare organisations.
Total Laboratory Throughput (TLT) increased 62% on pcp and 24% on the prior
six month period (2H FY21) to 11,136 tests.
Commercial test volumes increased 64% on pcp and 24% on the prior six month
period (2H FY21) to 9,192 tests, and accounted for 83% of TLT (up from 82% in
FY21).
The U.S. market accounted for 81% of TLT, 81% of commercial test volumes and
93% of operating revenue. CMS related tests (Medicare and Medicare Advantage)
accounted for 65% of total U.S. commercial test volumes. Cxbladder Detect and
Cxbladder Monitor (the two Cxbladder tests included in the LCD) accounted for
95% of total U.S. commercial test volumes.
Cash receipts from customers increased 110% on pcp to $5.4m, reflecting the
positive impact of cash reimbursement from the CMS and increased volumes.
Operating expenses increased 41% on pcp to $15.7m as the company invested for
growth, and particularly the sales and marketing efforts in the US.
For the six month period, Pacific Edge reported a Net Loss After Tax of
$9.0m, an increase of 27% on pcp.
The recent capital raise of $103.5m has significantly strengthened the
Company's balance sheet. As at 30 September 2021, net cash, cash equivalents
and short term deposits were $91.6m (which excludes the $23.5m raised in the
Retail Offer that was completed post-period end in October 2021).
Commercial Progress
The company continues to achieve commercial milestones as it progresses its
global growth strategy. In particular, in 1H22, Pacific Edge reported:
o Growth in the US sales force from 16 to 28 (75%) and the addition of two
new sales territories
o Commercial adoption of second Cxbladder product (Cxbladder Triage) by
Kaiser Permanente
o Expansion of coverage in New Zealand, with Northland and Taranaki public
healthcare providers (DHBs) adopting Cxbladder into use taking the total
coverage to more than 70% of New Zealand's population
o Acceptance of an important clinical paper outlining the significant
increase in clinical resolution that can be achieved from using multiple
Cxbladder products in the evaluation of a patient presenting to the clinic
with haematuria
o Publication of real world lookback study in the U.S, highlighting the
clinical utility of Cxbladder in a Covid19 setting for managing patients
outside the clinic
o Analysis of results from Singapore study on-track for publication in early
2022. This will form the basis of Pacific Edge's planned commercial rollout
in Southeast Asia, which is expected to become a market of scale for
Cxbladder over time similar to the U.S
o Dual listing on the ASX in September 2021
o Completion of successful $103.5 million capital raise to enable the company
to capitalise on recent commercial milestones and to accelerate the execution
of its global growth strategy in markets of scale
o In October 2021, announced the appointment of new CEO, Dr Peter Meintjes,
who will commence in the role in January 2022.
Outlook
Pacific Edge has a positive outlook for FY22 and beyond and is well
positioned to capitalise on the opportunities available to the company.
The U.S. market remains the primary focus and continued growth is expected
once Covid-19 restrictions ease. The scaled up U.S. commercial operations
provide the capacity and resource to drive growth opportunities and positive
results from this investment are now starting to be seen. The U.S. sales team
grew to 28 experienced sales representatives over the last year, with 30
sales reps expected to be operating by end-November.
The focus for FY22 is on growing the commercial adoption of Cxbladder by
Kaiser Permanente and other large healthcare organisations, further
increasing reimbursement coverage from private payers, and achieving a
positive shift in guideline inclusion language following the publication of
new clinical evidence further supporting the clinical utility of Cxbladder.
Full integration into Kaiser's patient referral system and Electronic Medical
Records has yet to be concluded and continues to constrain the growth rate
expected from this important customer. Despite this, commercial test numbers
continue to grow.
The recent clinical papers supporting the combined use of multiple Cxbladder
products will further evolve how urothelial cancer is diagnosed and managed,
with Cxbladder once again leading the way and delivering a greatly enriched
clinical proposition for urologists. These papers also provide additional
support in favour of inclusion in guidelines and national standards, which
remains a key component that will drive widespread adoption of Cxbladder.
Pacific Edge's rest of world markets - New Zealand, Australia and Singapore -
are markets of strategic importance, with tailored plans being executed
dependent on each market's commercial maturity.
Chairman of Pacific Edge, Chris Gallaher, said: "Pacific Edge's growth
momentum over the last six months, despite the ongoing headwinds from
Covid19, confirms the validity of our global growth strategy and the way we
go to market. We have a committed and experienced team, with significant
funding in place to allow us to scale up and to deliver revenue growth and
value creation for our shareholders in FY22 and beyond. We are confident in
our future and the actions we are taking now are positioning us to accelerate
our growth trajectory once Covid-19 restrictions ease."
I was watching the match price.
Early this morning it was 138, then 137, now 136
Let's see what happens in 5 minutes.
I think bottom line is it's a good result but still a way to go.
Given COVID closed access to hospitals I think it's an excellent result.
Once Kaiser sort out their computer integration things should be on the up
Oops and now match price 135
Ok good point. Yes the adoption isn't showing in the figures yet. So I guess that's where some sellers are focusing on. Bit of unknown hope I guess, but generally a positive report. If people hadn't waited for adoption of Cryptos when they were doubters, they would be far better off now right ;)
Unfortunately the market doesn't seem to be liking the news much this morning currently though. Was on the side of the fence that it would be a positive feeling a push SP back up to recent highs in the 1.5's :(
I know the focus is the US, but isn't it worrying to see that in NZ, where they actually have the support of most of the DHB's (albeit at about 1/4 of the price charged per test), where they are actually using the full suite of Cxbladder tests and are in the clinical pathway, that sales here amounted to a miserable $900k for the six months compared to $2.1m the full year before?
A billion dollar Company with sales of $5m for six months. This after apparent CMS approval, Kaiser, United, blah de blah.
Insane
Total Revenue increased 66%
Total Laboratory Throughput (TLT) increased 62%
Commercial test volumes increased 64%
Cash receipts from customers increased 110%
Operating expenses increased 41%
$100m in the bank