Pacific Edge releases Q2 FY25 test volumes

Pacific Edge (ASX:PEB) has reported a slight decrease in tests processed at its laboratories in the three months to the end of September 2024 (Q2 25) compared to the prior quarter (Q1 25). The company's total laboratory throughput (TLT) in Q2 25 fell 2.0% to 7,045 tests, with US TLT down 3.8% to 5,682 tests. However, the company experienced sustained benefits from its sales force efficiency gains and a lift in volume in the APAC region.

Executive Commentary on Q2 FY25 Performance

During the annual shareholders meeting, Dr. Peter Meintjes, Chief Executive of Pacific Edge, acknowledged the challenges faced due to the uncertainty over Medicare coverage of their tests. Despite the reduction in sales team and the decision to limit backfilling positions, the company continued to benefit from sales force efficiency improvements, a lift in volume from New Zealand, and sustained demand from Kaiser Permanente. Dr. Meintjes expressed confidence in the potential for positive progress in the coming months, citing catalysts such as the American Urological Association's review of its microhematuria guideline and the potential recognition of the clinical and economic value of urine biomarkers like Cxbladder. He also highlighted the company's approach to achieving a CMS price for Detect that recognizes its clinical and economic value and the strategy for the commercial launch of the test in 2025.

Summary of Q2 FY25 Performance and Outlook

Pacific Edge's Q2 FY25 test volumes showed a slight decrease compared to the prior quarter, primarily attributed to the challenges arising from the uncertainty over Medicare coverage of their tests. However, the company remains optimistic about the future, with potential catalysts for positive progress in the coming months. The company aims to achieve greater certainty regarding Medicare coverage for its future products and is focused on evidence generation to support sustained future growth. Additionally, the company is working towards the commercial launch of Detect in 2025 and is actively engaging with CMS to understand its reasoning and prepare for gapfill in 2025. Despite the challenges, Pacific Edge is committed to its long-term objectives and remains confident in the potential of its technology and vision.