Pacific Edge shares jump 8% after US Medicare approves bladder cancer tests
The new reimbursement policy for Triage and Triage Plus tests creates an addressable market worth over one billion US dollars annually.
By Matthew Qureshi ·
Shares of Dunedin-based diagnostics firm Pacific Edge rose by 8% on Friday following the announcement that the United States Medicare program will reimburse the company's cancer marker urine tests.
The coverage applies to the Triage and Triage Plus tests, which will be reimbursed at rates between 1,057 US dollars and 1,328 US dollars. This translates to 1,888 New Zealand dollars and 2,372 New Zealand dollars respectively.
Pacific Edge estimates that this decision opens a testing opportunity of approximately 1.14 million eligible cases per year. The company values this addressable market at well over one billion US dollars annually, though it projects capturing only a portion of that total revenue.
The Cxbladder tests utilize a non-invasive urine sample to help clinicians assess bladder cancer risk. This data assists doctors in determining whether a patient requires a cystoscopy, a more invasive diagnostic procedure.
Chief Executive Peter Meintjes described the Medicare decision as a major milestone for the company and its patients. He stated that the Local Coverage Determination confirms Pacific Edge as the market leader because only the Triage and Triage Plus tests are covered under the new policy.
The coverage policy takes effect on December 20. Competing tests and generic billing codes will not be covered, giving Pacific Edge a distinct competitive position in the US market.
More than 5,000 US urologists have already ordered over 130,000 Cxbladder tests. Pacific Edge argues that established Medicare coverage removes a reimbursement barrier that previously made some physicians hesitant to order the tests.
Medicare currently covers more than 71 million people in the US. The company believes this approval may also help it secure coverage from commercial insurers, which collectively serve about 223 million people.
Pacific Edge is making selective investments in its US commercial team and digital technology to prepare for the expanded market. Friday's share price increase of 8% follows a 9% gain recorded on Thursday.
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