Pacific Edge Financial Results For The 12 Months To 31 March 2021

Cancer diagnostics company, Pacific Edge Limited (NZX: PEB) is pleased to report accelerating revenue growth in its key markets as it starts to benefit from the major commercial milestones achieved in FY21 and despite the ongoing challenges and headwinds of COVID-19 throughout the year.

CEO of Pacific Edge, David Darling, commented: “Pacific Edge has delivered a strong result with a lift in momentum in our targeted markets, despite the impact that COVID-19 had on our business throughout the year. We delivered strong growth in operating revenue and operating cashflow, a reduction in our net loss and a significantly strengthened balance sheet, supporting the scale up of our U.S. commercial operations. We have strengthened our executive team in both New Zealand and the US to support Pacific Edge’s global growth aspirations. We are now seeing the benefits and monetisation from the significant effort and investment that has gone into commercialising Cxbladder and we believe this is just the start of a strong growth trajectory for our company.”

Pacific Edge has a strong outlook for FY22 and beyond and is well positioned to capitalise on the opportunities available to the company. Growth initiatives are being deployed in all Pacific Edge’s target markets, with the U.S. remaining the primary focus.

Chair of Pacific Edge, Chris Gallaher, said: “The strong revenue growth we have reported for FY21 highlights the value we are now starting to see as we advance the positioning of Cxbladder products as the preferred diagnostic tests for detecting and managing bladder cancer globally. The recent commercial reimbursement milestones concluded by the company in FY21 provide the strong foundations for growth in the U.S. and we are focussed on building scale as quicky as possible to deliver revenue growth and value creation for our shareholders in FY22 and beyond.”

Summary of performance for the period (% changes compared to prior comparative period (pcp)):

• Total revenue increased 101% to $10.4m, with operating revenue from test sales up 76% to $7.7m, despite
• the negative impact from COVID-19 on test volumes
• Cash receipts from customers increased 52% on pcp to $6.7m
• Total operating expenses increased 2% on pcp to $24.7m
• Net Loss After Tax improved 25% to $(14.2)m
• Net cash, cash equivalents and short-term deposits increased 56% to $23.1m as at 31 March 2021
• Operating revenue and cash receipts benefited from reimbursement coverage by Centers for Medicare and
• Medicaid Services (CMS) for Cxbladder Detect and Cxbladder Monitor from 1 July 2020
• Strong performance in 2H21 driven by CMS reimbursement coverage from 1 July 2020 and growing
• commercial adoption of Cxbladder following a significant negative impact on test volumes from COVID-19
• pandemic in 1H21
• Commercial test use by Kaiser Permanente commenced in late 2020 at a slower rate than initially expected
• due to COVID-19 challenges and demands on physicians; demand is now starting to lift as restrictions ease
• Positive results from the scale-up of US commercial operations starting to be seen in late Q4 FY21 with
• record test volumes and U.S. cash receipts recorded in March 2021
• Positive growth outlook with opportunities being deployed in all target markets, particularly the U.S.
• Increasing test volumes expected to underpin strong revenue and operating cashflow growth in FY22 and beyond

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