Pacific Edge’s APAC operations advancing towards profit with cancer test growth

• Business fortunes rebounding, Asia Pacific activities heading towards profit.
• Next generation test Cxbladder Triage Plus popular.
• Planning to replicate success in the U.S.

Pacific Edge (ASX:PEB) says it’s staging a significant business turnaround with its APAC business advancing towards profitability on a direct-cost basis. Supported by an increase in commercial test volumes and further adoption of the next-generation test Cxbladder Triage Plus, the company is also looking to expand its U.S. activities.

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CEO, Dr Peter Meintjes, said the strong improvement in the regional operation for the cancer diagnostics company saw APAC commercial tests rising 12.9% in Q1 27 to 1,158 tests from 1,026 tests in Q4 CY26.

“The quarterly performance of the Asia Pacific operations has demonstrated key results that we aim to replicate in the USA,” Dr Meintjes said.

“Transition to Triage Plus and a focus on the strategic selling of clinical pathways to institutions has led to several quarters of consistent growth in commercial testing volume, revenue, margin and margin percentage.

“We are delighted with this progress and are seeking to maintain this momentum for multiple forward-looking quarters,” Mr Meintjes continued.

“In the U.S., Novitas’s draft local coverage determination published on May 14, ‘Urine-based Biomarkers in Patients with Microhematuria’, has created the opportunity for similar success.

“With selective investments in our commercial and digital teams, we are seeking to target integrated delivery networks (IDNs) such as academic centres and hospital systems with clinical pathways for Triage Plus, and re-focus our account executives on intermediate risk microhematuria patients where our value proposition is clearer, and our commercial strategy can be rebuilt around reimbursable use.”

Dr Meintjes said APAC cash burn reduced to $0.17 million for the quarter, representing an improvement of approximately 9.0% on Q4 FY26 and approximately 15% on Q1 FY26, reflecting disciplined cost management, improved pricing, and a growing contribution from commercial testing.

APAC revenue of $2 million has already contributed 19% of operating revenue in the second half of FY26, up from 8% in FY25.

The combination of volume growth and increasing percentage of Triage Plus tests in the product mix is expected to further improve revenue expectations.

Total laboratory throughput was 5,116 for Q127, down 8.3% on the 5,582 recorded for Q426, with the fall largely due to an 82% reduction in clinical trials and investigator-initiated trial volumes to 115 in Q127, from 642.

U.S. commercial tests in Q1 27 were down a modest 2.4% to 3,295 from 3,375 in Q4 26, with the fall reflecting continuing attrition in the sales team to 5.0 from 7.7 FTEs in Q4 26, in line with the company’s cash preservation initiatives in place ahead of the release of the draft Medicare policy. The company is now focused on selective investments to drive commercial execution in the U.S.

PEB will open today at 24¢.

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