Pacific Edge Attracts US Investment And Undertakes Share Placement
Cancer diagnostics company, Pacific Edge Limited, has accepted an investment offer of NZ$ 2.622 million from Manchester Management Company, LLC (MMC), a US privately owned fund specialising in biotech and life sciences investments.
Pacific Edge will issue 8,195,338 shares (in aggregate) to MMC at NZ$0.32 cents per ordinary share, being a 24.75% premium over the VWAP for the 5 day trading period prior to 27 July 2018.
Pacific Edge Chairman, Chris Gallaher, commented: "The US fund adds further depth to the Company’s register and is a reflection of the growing international investor interest in Pacific Edge.
“Our ability to attract new investment from specialist investors is testament to our innovative product offer, the traction we are gaining in our commercial journey in the USA and the potential Pacific Edge has to gain a strong share of the multi-billion dollar bladder cancer diagnostics market.”
Manchester Management Managing Member, James Besser, said: "Manchester is excited with this investment in Pacific Edge, gaining direct exposure to a vertically integrated, cancer diagnostic company with an established commercial presence, clinically validated products and a strong management team.”
Manchester also has investments in emerging medical technology companies including Modular Medical, and Fennec Pharmaceuticals.
The additional capital further strengthens Pacific Edge’s balance sheet and will provide added support as Pacific Edge continues to grow sales for its Cxbladder bladder cancer diagnostics technology and deliver strengthening financial results. Pacific Edge remains focused on achieving a positive net cashflow position.
Pacific Edge owns world leading molecular diagnostics tests for the detection and management of urothelial cancer (including bladder cancer). It is seeking to disrupt decades of established medical practice and has been gaining traction in the US healthcare market, demonstrated by a number of significant achievements, including:
- An established commercial presence in the USA, with a CLIA accredited laboratory and experienced US sales force;
- Expanding presence and adoption by urologists;
- Agreed cover and contract pricing with the Veterans Administration and TRICARE;
- Currently in commercial negotiations with healthcare provider Kaiser Permanente, following successful completion of a large scale User Programme;
- Significantly progressed in submissions to be included in Local Coverage Determination (LCD) which will allow for reimbursement of CMS patients;
- Issued CPT Codes by the American Medical Association, a key factor in the reimbursement process in the USA; and
- Ongoing clinical validation which demonstrates the outperformance of Cxbladder compared to other commonly used diagnostics.
Adoption of Pacific Edge’s Cxbladder tests is growing and, for the year ended 31 March 2018, the Company delivered a 28% increase in laboratory throughput (with 82% of throughput being billable) and grew cash revenue by 6%. In addition to the $16.2 million cash on hand at FY18 year end, the new investment provides additional support for Pacific Edge to drive its commercial growth.
Pacific Edge is the only company in the world to have a suite of molecular diagnostic tests in bladder cancer that addresses different needs throughout the diagnostic and treatment pathway - from investigation of haematuria through to the management of patients who have the disease and are coming back to the clinic for evaluation of the recurrence of bladder cancer. Pacific Edge is focused on positioning its highly accurate, non-invasive and cost effective Cxbladder technology as the preferred diagnostic tool for clinicians and urologists, and is seeing increasing demand and uptake from both private and public healthcare providers.
For more information contact:
Chief Executive Officer
Pacific Edge Ltd
P: +64 (3) 479 5800« Back