Set-up, development costs make loss for Pacific Edge

David Darling
David Darling
Dunedin bio-tech company Pacific Edge has reported an expected loss of $3.24 million for the half year as it awaits US regulatory approval to open its just completed $4.5 million laboratory in Pennsylvania.

Full-year operating losses for the past two years were, respectively, $4.1 million and $3.6 million.

The half-year loss to September of $3.24 million was slightly better than the budgeted $3.30 million, but near double the half-year loss of $1.71 million a year ago.

Shares in Pacific Edge were down slightly after the announcement at 44c but maintained a market capitalisation beyond $120 million since the shares had more than doubled in value from early August.

On the consecutive half-year losses, Pacific Edge chief executive David Darling said the majority of the net loss was in setting up the US laboratory, clinical trials, intellectual property applications and product development.

"The company is investing significant funds in the setup and running of the commercial laboratory and the development of the US strategy this financial year," Mr Darling said in a market update.

While having booked total losses of almost $25.6 million since listing in 2005, it recapitalised by more than $20 million last year, in order to fully develop and market its non-invasive, diagnostic Cxbladder test.

 

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