Nov. 29 (BusinessDesk) - Pacific Edge, which is banking on successfully commercialising its Cxbladder urine testing product, widened its first-half loss as it ramped up spending to set up its business in the US.
The Dunedin-based company made a loss of $3.2 million, or 1.2 cents per share, in the six months ended Sept. 30, from $1.7 million, or 0.9 cents, a year earlier, it said in a statement. Revenue climbed 29 percent to $325,000, though just $11,000 of that came from external customers.
"The majority of this net loss is the investment in the company’s setting up of business in the US, clinical trials, product development and intellectual property as it is expensed," it said. "The company is investing significant funds in the set-up and running of the commercial laboratory and the development of the US strategy in this financial year."
The shares fell 2.2 percent to 44 cents, having surged 137 percent this year. That values the company at $122.7 million.
Pacific Edge hopes to successfully bring its urine sampling system to market, having won clinical confirmation the Cxbladder is at least as effective as other methods from the American Journal of Urology. The local company says that could be worth up to $100 million in five years' time.
Last month, the company completed its US lab in Pennsylvania and is waiting on regulatory approval to use the building.