Cancer diagnostic company Pacific Edge became a
Dunedin-based superstar this week as its share price briefly
reached $1.75 on the back of several good news announcements.
Craigs Investment Partners broker Chris Timms said yesterday
it was as if someone lit a rocket under the share price.
This month was momentous for the company, starting on October
2 with the announcement of its United States accreditation
for the Dunedin laboratory to conduct Cxbladder tests of US
But what really set the market alight was an announcement on
October 15 the company had reached a deal with US national
provider network FedMed, a health group of 40 million
Before the announcement, the shares were trading at 50c. On
October 16, 2.2 million shares were traded and the stock
closed at 67c. The next day. the shares traded at 72c before
an announcement by the company last Friday it had achieved
the first US commercial sales of Cxbladder tests.
Also on Friday, the company's Cxbladder cancer diagnostic
test was named supreme winner at the NZ Innovators Awards.
By Wednesday this week, the share price had doubled in a week
to $1.06 with 3.3 million shares traded, up from 1.6 million
on the previous two days. The company had announced a deal
with America's Choice Provider Network, a health group of 14
On Thursday, more than eight million shares were traded after
a two for 15 renounceable rights issue was announced.
Pacific Edge had in the past sometimes struggled to have more
than 100,000 shares traded in a day.
''The company is definitely making progress,'' Mr Timms said.
''It is great for company shareholders who have been with the
company for a long time. But now the company has to show
there is some financial substance behind all the
''To be fair, profitability is probably some time away but
Pacific Edge needs to show it is moving towards that point.
The good news has to turn into dollars.''
The company earlier reported an operating loss of $6.92
million for the year ended March, an increase on the $4.1
million loss in the previous corresponding period.
Asked about the type of people likely to be investing, Mr
Timms said there was no doubt some investors liked to follow
Some people bought shares with understanding about Pacific
Edge and its Cxbladder products.
''Others can be fickle. They make a bit of money and move on.
The momentum investors want to be part of it.''
Pacific Edge chief executive David Darling said this week the
volatile share price had been ''surreal''. Last December, the
Otago Daily Times 2012 businessman of the year
predicted 2013 would be a significant year for the company.
And so it has turned out.
There was ''latent demand'' for the Cxbladder technology and
people were seeing the barriers and risks to the future of
the product, which detects bladder cancer through urine
tests, coming down.
Four major announcements in the space of a week included the
first sales of the product in the US.
''We have a network of providers in the US and people are
feeling good about the opportunities.''
There were more deals to come as the company kept ''chipping
away''. Some deals took a while to get signed.
Pacific Edge shares last traded at $1.51.