Wellington
Pacific Edge Ltd ., is inching its way to commercialisationof its bladder cancer detection tests - showing that it can be done, but never 'overnight'.
Above all it also demonstrates just how much effort it takes to turn an idea, detecting thepresence of cancer cells in urine, and turning that into a sellable product - an assay test that iseasily and accurately able to be used by urologists and physicians as a diagnostic and prognosistool.
Along the way the Dunedin-based company has had to prove its methodology in different locations;so far in Australasia, America and Europe, and is now working on the best way to commercially rollout the tests.
For New Zealand and Australia, as its home-based testing ground, that means setting up adiagnostic laboratory in Dunedin; to where the collected urine samples are sent for analysis andevaluation. The potential Australasian market size is in excess of 50,000 tests annually.
Its strategy in other locations will be to develop and run diagnostic laboratories in selectedgeographies. This will initially be for its bladder cancer detection technology, then adding itscolorectal cancer prognostic product.
The company also has other cancer tests it is developing, and these would also be analysed andevaluated through its laboratories.
One part of its commercialisation will be 'turn-key' licences for select partners in Europe andthe USA.
The market itself is large. There's over 63,000 new cases of bladder cancer a year inAmerica, which means more than 1,000,000 people will require investigation whether they have thedisease. The cost of these investigations is between US$520m to $1 billion, using conventionalclinical technology.
In announcing its half-year results, in an understated way Pacific Edge says, "the companyexpects that Cxbladder could reasonably be expected to enable significantly better outcomes for thepatient and cost savings for the healthcare system."
Which is short-hand for saying they can clip part of that ticket by providing a test that is moreaccurate than the other urine tests in common usage.
Pacific Edge has shown in clinical trials that cancer detection methodology is better than thealternatives, and provides physicians with a better of idea of a cancer's progression. The cost ofdeveloping this proof isn't insignificant however, and yet again, the company recorded a netloss.
For the half year to the end of Sept. that loss was just under $1.4m - the majority being for thecompany's clinical trials, product development and intellectual property protection.
During the year existing shareholders invested another NZ$4.7m in the company; so it has asignificant number of people who have faith that in the longterm, it will deliver.
And it is a longterm game. The company was formed in February 2001 based on multiple cancerbiomarker research out of Otago University.
By going down a cancer diagnostic path, rather than a 'cure' (though that might be possible lateron), its speed to market can be relatively quicker.
But never overnight.