Medicare Coverage Loss Looms as Pacific Edge Seeks Shareholder Approval for Capital Raise
Pacific Edge has successfully raised NZ$16 million through an upsized equity placement, surpassing its initial target and setting the stage for a planned NZ$5 million Share Purchase Plan. The funds aim to accelerate clinical and commercial milestones, including regaining Medicare coverage for its cancer diagnostic tests.
- Upsized NZ$16 million equity placement at NZ$0.10 per share
- Placement supported by existing shareholders, pending shareholder approval
- Planned NZ$5 million Share Purchase Plan at same price to follow
- Funds to support clinical growth and Medicare coverage reinstatement
- Inclusion of Cxbladder in American Urological Association guideline boosts commercial prospects
Successful Capital Raise Surpasses Expectations
Pacific Edge, a New Zealand-based cancer diagnostics company, has announced the completion of an upsized equity placement raising NZ$16 million, exceeding its initial target by NZ$1 million. Priced at NZ$0.10 per share, the placement attracted strong support from existing shareholders, reflecting confidence in the company’s strategic direction and growth potential.
The placement is subject to shareholder approval, with a meeting scheduled for July or early August 2025. To complement this capital injection, Pacific Edge plans to launch a Share Purchase Plan (SPP) targeting an additional NZ$5 million at the same share price, offering eligible investors a chance to participate in the company’s next growth phase.
Strategic Focus on Medicare Coverage and Clinical Milestones
The funds raised will be directed towards advancing Pacific Edge’s clinical and commercial milestones, particularly efforts to regain Medicare coverage for its diagnostic tests. This follows a setback when coverage ceased after a new Local Coverage Determination came into effect in April 2025. Regaining Medicare reimbursement is critical for the company’s revenue growth and broader adoption of its tests in the US healthcare system.
Pacific Edge’s flagship product, Cxbladder, a non-invasive urine test suite for urothelial cancer risk stratification, has recently been included in the American Urological Association’s (AUA) microhematuria guideline. This endorsement marks a significant commercial and clinical milestone, potentially accelerating test adoption and supporting the company’s case for Medicare coverage reinstatement.
Market Position and Growth Outlook
Headquartered in Dunedin, New Zealand, Pacific Edge operates globally with CLIA-certified laboratories in New Zealand and the USA. The company’s Cxbladder tests have been ordered over 130,000 times by more than 5,000 urologists, with strong penetration in the US market and accessibility in Australasia, Israel, Asia, and South America.
Pacific Edge’s leadership expressed optimism about the clinical evidence emerging from ongoing studies, which they believe will shift sentiment towards broader adoption of their tests beyond Medicare coverage. The company is leveraging this momentum to capitalize on new commercial opportunities and improve patient outcomes worldwide.
Shareholder approval and regulatory waivers remain key steps before the placement shares can be allotted, introducing some execution risk. However, the company’s clear strategy and strong investor backing position it well for the next stage of growth.
Bottom Line?
Pacific Edge’s capital raise and clinical endorsements set the stage for a critical Medicare coverage comeback, but shareholder approval will be the next pivotal hurdle.
Questions in the middle?
- Will shareholder approval be secured smoothly to finalize the placement?
- How soon can Pacific Edge regain Medicare coverage and what impact will it have on revenues?
- What are the implications of the AUA guideline inclusion for broader market adoption?