Cancer diagnostic pharmaceutical company Pacific Edge Ltd (ASX:PEB) has reported a drop of 24 percent in cash costs in the second half of the Financial Year, based on a reorganisation of the company, in addition to revenue growth throughout the year ahead of its chairman Chris Gallaher stepping down.
Pacific Edge’s ‘cash burn’ fell to $11.9 million in the second half of Financial Year 2024, down 24 percent compared to the first half of the year. This was also influenced by caution regarding capital spending, with a focus on the company’s long-term goals.
However, the company also experienced a fall in cash and cash equivalents, from $62.2 million in September 2023 to $50.3 million.
At the same time, revenue grew 12 percent in the same Financial Year, boosted by increased collections and the higher volumes – by 2 percent – of its patented bladder cancer diagnostic tests Cxbladder available on the US market.
Total revenue was sitting at $29.3 million based on this rise, while operating revenue for the year had grown 22 percent, to $23.9 million.
The number of Cxbladder tests put through laboratories rose 3 percent to 32,633 tests, while commercial tests increased by 2 percent to 27,347, although there was some reduction in the second half of the year, based on a reduction in the company’s sales team.
Pacific Edge also saw its earnings from tests increase by 18 percent (per test, according to average US sales price), from US$519 in the second half of 2023 to US$613 in the second half of 2024.
This was based on increased volumes from major private payer Kaiser Permanente, and improvements in cash collection.
Chairman Chris Gallaher said he was pleased with how Pacific Edge was tracking regarding its developments for the US market.
“The Board is pleased with the progress Peter and his team have made as we work towards gaining certainty on Medicare coverage of our tests,” he said.
“They have acted swiftly regarding the need to preserve capital through uncertainty and retained their focus on the strategic imperatives in clinical evidence generation that will underpin our future success and prepare the company for all outcomes.
“As announced in March, I will be stepping down as the Chairman of Pacific Edge at the end
of the year.
“The Board is working through the Nominations Committee to identify my successor
who will lead the Company into the next phase of its development.”