Cancer test makers report sales headway

AUCKLAND: Cancer test makers Pacific Edge and TruScreen both gave investors something to cheer about as they made headway in their respective markets.

The shares of Cxbladder manufacturer Pacific Edge, headquartered in Dunedin, surged by a third after successive announcements on breaking into the North America health bureaucracy, although the stock came off the boil yesterday, down 3.9% to 37c.

Johns Hopkins Medicine is evaluating the bladder cancer test and the Centres for Medicare and Medicaid Services have set the preliminary reimbursement rate for the tests.

First NZ Capital slashed its revenue forecast by 71% to $7.5 million for the year ending March 31 and more than halved its 2020 sales forecast. The research house said Pacific Edge might need to raise more capital, but said the two announcements were significant for the firm.

‘‘Private insurers often wait for CMS approval before contracting with providers. As such, investors should monitor whether PEB starts announcing more deals with private payers and it could attract more US capital,’’ FNZC said in a note to clients.

‘‘News that Johns Hopkins Medicine has commenced a commercial evaluation of Cxbladder, means another wellrespected entity is reviewing its potential, albeit the timeframe to a possible commercial deal is unknown.’’

FNZC retained its 50c target price with an ‘‘outperform’’ rating while noting the stock was a highrisk investment.

Similarly, cervical cancer test maker TruScreen shares jumped 18% to 23.5c after at said sales soared to $1.4 million in the six months ended September 30, from $226,000 a year earlier.

The firm is focusing primarily on China, but has also made inroads into Africa after closing a $450,000 sale to Zimbabwe’s National Aids Council as the preferred method for screening HIVaffected women.

TruScreen said gross margin improved since the opening of a new manufacturing facility cut the company’s cost of production.