New Zealand's Pacific Edge aims to raise up to 24 million dollars more after US insurer loss
New Zealand-based cancer diagnostics company Pacific Edge is aiming to raise up to 24 million dollars in new capital after losing its largest US insurance contract. The company plans to enter the Asian market to diversify revenue. The stock fell 8% on the NZX after the announcement.
Pacific Edge develops the CxBladder urine-based bladder cancer detection tests. Its biggest US insurance partner, UnitedHealth, has removed the tests from its reimbursement list, an estimated loss of 18 million dollars in annual revenue.
The company plans to enter the Australia and Taiwan markets by the end of 2026, targeting 6 million dollars in annual revenue. Management said the capital raise will be open to institutional investors and high-net-worth individuals. North American headcount will be cut by 20%.
After the NZX drop, Pacific Edge's market capitalisation stands around 120 million dollars. Analysts expect near-term cash flow pressure to persist. The company is targeting positive EBITDA in early 2027. The New Zealand dollar held flat against the US dollar after the news.
More from Australia-Pacific
Australian PM Albanese says Liberals and Nationals 'legitimised' One Nation at Farrer by-election
Australian PM Anthony Albanese said the result of the Farrer by-election showed that the Coalition partners had legitimised the One Nation party. The comments reignited the opposition leadership race. The Australian dollar held flat against the US dollar following the remarks.
'Time is now' for charging expansion as EV buzz builds
As electric-vehicle sales rise across Australia, industry voices are urging an urgent expansion of public charging infrastructure, ABC News Australia reports. Persistent gaps in regional and rural charging networks are slowing investment commitments, the report says. The federal government is re-examining its incentive structure.
Australian regulator found a convicted sex offender exempt from needing a Working With Children Check
Victoria's regulator has determined that a man with prior sex-offence convictions did not require a Working With Children Check, ABC News Australia reports. The finding has drawn sharp criticism from child-protection experts and advocacy groups. The state government said it will review how WWCC exemptions are assessed.