PEB - Pacific Edge Ltd

[Balance]

Looks like 10c close? Big boys coming out to sell.

[blackcap]

Harbour have a truck load of MFB, is that a Kiwisaver fund ? Some serious losses here .....

Don't worry, its other peoples money. Harbour will be fine....

[Balance]

Whats the employee head count and overhead costs ?

52 employees at end of March 2022 (Annual Report) with salaries over $100,000 - company has been furiously adding on more sales and marketing staff so expect that number to be a lot more by now.

Latest financials show Sales & Marketing and General & Admin expenses at $35.2m (up 60% on 2022).

To survive, PEB is going to have to cut expenses to the bone and get rid of all the extra sales & marketing personnel taken on in the last 3 years.

Biggest question facing the company now is whether Peter Meintjes the right CEO to lead the restructuring as he was brought in to accelerate the growth of PEB!

[RRR]

CX bladder is an overhyped test..PEB have been promoting for more than a decade. If CX bladder was really that a good test for bladder cancer doctors would have started using by now..doctor blaming should stop..They really need to look beyond CX bladder but do they any product that is close to commercialisation?? I am not sure

[whatsup]

52 employees at end of March 2022 (Annual Report) with salaries over $100,000 - company has been furiously adding on more sales and marketing staff so expect that number to be a lot more by now.

Latest financials show Sales & Marketing and General & Admin expenses at $35.2m (up 60% on 2022).

To survive, PEB is going to have to cut expenses to the bone and get rid of all the extra sales & marketing personnel taken on in the last 3 years.

Biggest question facing the company now is whether Peter Meintjes the right CEO to lead the restructuring as he was brought in to accelerate the growth of PEB!

and this is the crox of the problem now, do they slash and burn in order to try and survive or keep on spending until the money runs out ?

[Balance]

and this is the crox of the problem now, do they slash and burn in order to try and survive or keep on spending until the money runs out ?

Let’s hope they go back to basics and use the $87m left wisely to get proper validation before embarking on another wild goose chase in the States.

Sometimes one has to go backwards and go on another path to move forwards again if there’s an insurmountable barrier in the way.

[Harrie]

The biggest problem is that the AUA and the NCCN have never bought into Cxbladder. The association that urologists belong to is there specifically to protect and enhance earnings of their members, and maybe they saw that a simple urine test would upset the fee income earning capacity coming from other more traditional methodologies being used. Navitas obviously drew a lot of the material used to decline LCD for Cxbladder in entirety from these sources and who knows who may have been corrupted inside Navitas to decline it.
I have never really been crystal clear on just how much more reliable Cxbladder detect is c/f current methodologies. I have seen a NPV of 97% quoted, but how far does this go. Are there variables that are not included that the AUA are sceptible about? etc.
Have managment ever sat down with the AUA to discuss their findings or peer reviewed AUA's findings?
PEB need to have a more honest conversation with its shareholders.

[silverblizzard888]

I remember when they first had their breakthrough with the FDA and they considered selling the whole thing to other companies, but got offered peanuts. In their minds it was worth much more, even to the point of saying they could generate $100 million in sales in 5 years. Fast froward to the current point you can definitely see why they were offered peanuts because getting this thing off the ground has not only been a grind without success, but also a massive loss making exercise in hope. Truth is the companies they offered to sell out to all those years ago saw the challenges and it turns out they were right.

Now they have to recognize what all those years of work has amounted to and reset the strategy. Start cutting cost to the point that they can reach break-even on a minimum amount of test. To an extent it might even be worth withdrawing from the US as a main focus and start pursuing countries who might offer a smaller market, but at least one they could breakeven in and build a base for the future. No more big dreams of hyper sales and success, just build a sustainable operation first. Maybe its even in the name like 'peb' standing for pebble, you can chuck all those all day without effect; should have called it 'roc' for better effect

[Balance]

I remember when they first had their breakthrough with the FDA and they considered selling the whole thing to other companies, but got offered peanuts. In their minds it was worth much more, even to the point of saying they could generate $100 million in sales in 5 years. Fast froward to the current point you can definitely see why they were offered peanuts because getting this thing off the ground has not only been a grind without success, but also a massive loss making exercise in hope. Truth is the companies they offered to sell out to all those years ago saw the challenges and it turns out they were right.

Now they have to recognize what all those years of work has amounted to and reset the strategy. Start cutting cost to the point that they can reach break-even on a minimum amount of test. To an extent it might even be worth withdrawing from the US as a main focus and start pursuing countries who might offer a smaller market, but at least one they could breakeven in and build a base for the future. No more big dreams of hyper sales and success, just build a sustainable operation first. Maybe its even in the name like 'peb' standing for pebble, you can chuck all those all day without effect; should have called it 'roc' for better effect

They actually never had a FDA breakthrough as they wanted to ‘fast track’ the rollout of CxBladder in the States - so they did not bother with the FDA accreditation & approval process. Big big mistake and now shareholders are paying a horrendous price for that short sighted decision 10+ years later.

Meanwhile, it does look like they will try to conserve cash by signalling a freeze on hiring, discretionary spend and capex. What they have to do is scale back ruthlessly as you suggest and start again but with some revenues coming in.

https://www.odt.co.nz/business/pacif...-after-setback

Will be the big boys keep selling while the minnows snap up the shares at a ‘bargain’ price?

[winner69]

Wasn’t that long ago (mid 2020) ANZ fronted up with $22m new growth capital …..paid a premium at the time for the 33 million new shares PEB issued

Exciting times ahead for PEB after the break through with Medicare the ANZ man said. Even Dave was excited