Dunedin bladder cancer diagnostic company Pacific Edge got a
positive first report card from brokers Forsyth Barr's
research - but carries a ''speculative'' risk rating.
Pacific Edge is focusing attention on US sales, where it has
regulatory approval, several major health provider contracts
and its own laboratory, with tens of millions of potential
Forsyth Barr broker Haley Van Leeuwen said the Cxbladder
detection product had been trialled and outperformed current
accepted benchmark tests and there were several strong
propositions for its use in a clinician's regular assessment.
''Cxbladder detect is clinically validated and outperforms
benchmark tests, creating a strong case for acceptance by
clinicians,'' Mrs Van Leeuwen said.
''The model is highly scalable and we have early evidence of
progress in the US,'' she said.
While Pacific Edge had been in the US market for 12-months
and had hit several ''key milestones'', changing established
clinical processes was ''challenging''.
''Pacific Edge appears to be making some inroads in the US,
but it is early days and the commercial model is unproven.
Having spent more than $20 million on research and
development, and booked a decade of consecutive losses,
Pacific Edge was targeting annual revenue up to $100 million
However, Mrs Van Leeuwen pushed out the $100 million
timeframe to 2021.
Healthcare and biotechnology was a large area of investment
globally and lead times from discovery to publishing, trials
and commercialisation ''are typically long'', she said.
''There is a risk that Pacific Edge is unsuccessful in
commercialisation and, therefore, has little value,'' she
From the maiden research report, Pacific Edge's risk rating
was set at ''Speculative - the commercial model is not yet
She said there was potential for Pacific Edge to become an
acquisition target, but Mrs Van Leeuwen expected that was
more likely when the company had ''progressed further in the