Pacific Edge's immediate and mid-term growth potential lies squarely in the vast United States market, having signed up numerous, large health providers representing millions of potential users of its Cxbladder product, a non-intrusive urine test for bladder cancer.
The European Intellectual Patent Office, which represents 38 European countries, has granted patent protection over Pacific Edge's colorectal cancer prognostic technology, which is separate to its mainstay product, Cxbladder.
Pacific Edge chief executive David Darling said yesterday Europe was a potentially major market.
Pacific Edge's colorectal cancer prognostic gene signature was in development and when finished would become another commercial product, joining the Cx family as Cxcolorectal, he said.
When Cxcolorectal is completed and launched on to the market, it would allow clinicians to help identify patients at greatest risk, who will then be able to target chemotherapy, in addition to surgery, Mr Darling said.
The company focus remained in the US at present, where momentum in sales was building as Pacific Edge entered its second year of commercial operations, with its own purpose-built laboratory in Pennsylvania.
Mr Darling said Pacific Edge was ''rapidly expanding'' its portfolio of intellectual property (IP) rights, averaging costs of $5 million a year on IP, with patents granted in Japan for prognosis of colorectal cancer, China for detection of gastric cancer and in the US for prognosis of melanoma.
In Pacific Edge's full-year result to the end of March, revenue was up almost 200% to $523,000, but after-tax losses climbed 44% on the previous year, from $6.9 million to $9.3 million.
As at March, Pacific Edge had more than $20 million cash in hand.
Pacific Edge half-year result is due tomorrow.
Its shares, which had a $1.76 high and 67c low during the past year, were trading up 4c, at 85c yesterday, after the news.
Forsyth Barr broker Haley Van Leeuwen said Pacific Edge was ''well positioned'' to capitalise on the US opportunity in commercialising Cxbladder.
''This is underpinned by the high calibre of its staff and management team, impressive US laboratory and the efficient model of delivery,'' Mrs Van Leeuwen said.
She noted a second product, ''Cxbladder triage'' was about to be launched and three Cxbladder-related products were expected to be in the market by the end of 2015.
''Offering additional products through the same channel is the fastest way for Pacific Edge to scale [up] its business,'' she said.
Craigs Investment Partners broker Peter McIntyre said investors would be looking for an improvement in revenue, given that Pacific Edge had targeted a $100 million annual revenue figure in coming years.
''What's going to drive the share price will be revenue growth over the next two to three years,'' Mr McIntyre said, noting its share price volatility during the past year.
Also of note will be the extent of its ''cash burn'', of its $20 million cash in hand, update on franchise process and ongoing investment into the US market, he said.
