Company Interview / Pacific Edge rebuilds and waits on US Medicare decision

Key points:

Medicare draft coverage viewed as key to restoring revenue and unlocking US commercial payers Capital raise and oversubscribed share purchase plan seen as strengthening Pacific Edge’s balance sheet New test pricing and global hospital uptake regarded as improving path to profitability

Pacific Edge (ASX:PEB) is navigating a challenging year as it reports a net loss of nearly $36 million for FY26, with revenue halving following the loss of US Medicare coverage. Peter Meintjes states that, in context, the result is acceptable because the company anticipates lower revenue and focuses on strategic milestones, particularly in the US. He highlights a draft Medicare coverage determination for its haematuria evaluation tests, which he views as a major step towards reinstating coverage and influencing commercial insurers.

Meintjes considers Medicare policy pivotal because other US payers often mirror its decisions; without it, Pacific Edge’s tests may be labelled experimental and go unpaid. Draft coverage, in his view, not only restores access to Medicare patients but also provides policy language that commercial insurers and Medicare Advantage plans can adopt, improving reimbursement prospects and market reach.

To bridge the revenue gap, Pacific Edge raises $25.4 million via placement and is running an oversubscribed share purchase plan, which Meintjes regards as a strong endorsement from New Zealand investors. He points to ongoing product development, including CXbladder Surveillance Plus, and growing adoption in New Zealand, Australia and Asia. While not providing profitability guidance, Meintjes sees the new Medicare price of US$1,328 per test as improving unit economics and accelerating the pathway towards profitability.