PEB - Pacific Edge Ltd

[MAC]

Hi Carpenterjoe,

It may seem to be a lot of sales folk at 80, Exact Sciences have appointed 180 sales staff within their first year of commercialisation for their diagnostic test Cologuard.

Although RNA based molecular diagnostic companies all have a similar laboratory test processes and similar gross margins, circa 80%, their respective markets that they sell into are each a little different.

When selling to General Practitioners a very large sales force is required as there are literally millions of GP’s in the US, each offers the potential of prescribing a small number of tests each per annum.

When selling to Specialists, or directly into medical facilities, hospitals, a much lower number of sales staff is required to cover just a few thousand Specialists, each of whom offer the potential of prescribing relatively very many tests each per annum.

With Cxbladder(detect), Pacific Edge are marketing to 11,500 specialist urologists in the US, many of whom clump together in large urology groups. Thus, only 20 sales staff may be ultimately be required for this product, as Pacific Edge tell us.

For Cxbladder(triage), Pacific Edge may very well market this product to General Practitioners, we have not been advised by the company yet, perhaps when the official US product launch is announced shortly.

The benefit to Pacific Edge with Cxbladder(detect), is that not only do they have very high gross margins for the product at 80%, but also because they need much fewer sales staff, and associated overhead, their net margins are also much more profitable to the bottom line.

Quite an enviable product really within the diagnostics world !

kind regards, Mac

[MAC]

It’s just my idle speculation, that’s all it openly is, but I do suspect that there were possibly two reasons why the launch of Cxbladder(triage) did not occur in the US at the same time that it did in NZ.

Firstly, I believe they were awaiting the completion of the recent study in the US and the local population tuning of the Phenotypic parameters used in the Cxbladder(triage) test process. All done now and well published and presented here;

http://www.biomedcentral.com/content...015-0018-5.pdf

And secondly, it is possible they may have in that six month period been courting a distributing partner whom would market and sell Cxbladder(triage) on their behalf to a mixed market of General Practitioners, Specialists and medical facilities.

It may or may not be that they will wait for the completion of the KP user programme, I’m not convinced they need to do so.

However, as Minerbarejet has very kindly pointed out, the promotional company that Pacific Edge use has been plastering Cxbladder(triage) articles all over the internet this week, probably behind the scenes heavily also, and that may well be the preclude to a US launch announcement, and maybe a coincident partnership agreement announcement also, although there is no reason why that could not come later.

Perhaps we will find out more from the FY commentary and conference call next week.

[Minerbarejet]

It would appear that they weren't too worried about completion of the NZDHB triage trial as this ends next month yet they launched Triage in NZ Dec 2014. Is this a precedent? Will a launch of Triage in the US (as indicated) in June be a precursor for a 6 month later
KP test conclusion. Thats being pretty confident on their part but they would sure help our confidence if they put out quarterly reports as so many companies do.

[skid]

Sorry, Skid, it wasnt biotech but Diagnostics. Here is the link.
http://www.fiercediagnostics.com/pre...-bladder-cance

Much the same as the others.
cxbladder detect launched in July 2013
How do you figure year 3? It hasnt been available 2 years yet in the States
Try and forget they ever mentioned 100 million, that is not the defining moment.
That moment is where they make a profit, however minor.
Genomics hat consists of a bladder cancer monitor,( not detect, triage or predict) and wont be out until 2016
Still has to be better than CxBladder to be a threat.
The only race is the human race that all these companies are trying to help.
Rust never sleeps.

I was looking at the chart on edison that had the years 2012-2016 did they mention the 5 yr plan in 2012?---Maybe I got it wrong --if so apologies

[Minerbarejet]

I was looking at the chart on edison that had the years 2012-2016 did they mention the 5 yr plan in 2012?---Maybe I got it wrong --if so apologies

The PEB management have stated several times that the five year plan starts with the first full year of commercial sales. Noting that cxbladder detect was launched in July 2013 and commercial sales started in Sept or Oct of that year. Assuming they mean financial year, the starting year would be the year from April 1 2014 to March 31 2015 the reporting of which, lo and behold, is almost upon us.

[skid]

PEB originally announced the results of the Kaiser program would be out early this year--Edison says a very different story---lets hope that we get some clarification when the results come out--along with revenue of course.

Of course we will compare to the Edison report (as there is nothing else to compare to)

[Carpenterjoe]

PEB originally announced the results of the Kaiser program would be out early this year--Edison says a very different story---lets hope that we get some clarification when the results come out--along with revenue of course.

Of course we will compare to the Edison report (as there is nothing else to compare to)

ill pass,

I prefer to monitor Medical Guidelines in different countries, I feel when the guidelines catch up with the technology, that will be more important than annual reports or Edison. For that to happen, I believe the only step remaining is to prove cx bladder is financially advantageous to the healthcare system.
I cannot see this report containing any amazing information. Especially with the way pacific edge is reimbursed/revenue recognised, it will be impossible for revenue to catch up with some people's expectations. therefore some will be disappointed and others will understand the plan.

Rock and Roll

[Minerbarejet]

You could compare it to the last Forbarr report instead.
Or wait for a new one after the conference call.

Ref post 13360

[skid]

ill pass,

I prefer to monitor Medical Guidelines in different countries, I feel when the guidelines catch up with the technology, that will be more important than annual reports or Edison. For that to happen, I believe the only step remaining is to prove cx bladder is financially advantageous to the healthcare system.
I cannot see this report containing any amazing information. Especially with the way pacific edge is reimbursed/revenue recognised, it will be impossible for revenue to catch up with some people's expectations. therefore some will be disappointed and others will understand the plan.

Rock and Roll

I agree--It will be more of the same for a good while yet..

[skid]

You could compare it to the last Forbarr report instead.
Or wait for a new one after the conference call.

Ref post 13360

Yes you could--assuming that either has the depth that the edison report had (for better or worse)--Do you reckon the conference call will have those time frames and spreadsheet? That would be a great change if they do.

Mark my words though-Genomic is a threat--Its a one stop shop and hudge company that easily grabs headlines (you saw their presence at the AUA conference,which is the holy grail of exposer)--their test detects the presence of tumors--How big of a step to go to diagnostic---But they could be a savior also (well,for some)as they could buy out PEB --swallow the minnow---Perhaps wait till coverage comes through--It would be far more valuable in their stable(all heresay of course)

most likely we will be looking at alot of sideways action for awhile yet in this miniscule little corner of the medical world