Cxbladder Test Volumes Fall Following Restructure

Pacific Edge today announces tests processed at its laboratories weakened in the three months to the end of 31 December 2023, with the fall largely reflecting the reduction of the Commercial team in Q2 24.

The Sales Team¹, reduced amid continued uncertainty over whether Cxbladder will retain Medicare coverage, now stands at 17 from its peak of 34, ahead of Novitas, the Medicare Administrative Contractor with jurisdiction for Pacific Edge’s laboratories, releasing its non-coverage determination in June 2023. Company-wide adaptation to the Q2 24 restructure and the seasonal headwinds of holidays, reduced laboratory operating days and physician schedules also contributed to the fall in US volumes.

In the three months to the end of December 2023 (Q3 24), the team processed 7,172 tests, a 15.9% reduction over the 8,525 tests processed in Q2 24 and a 7.7% reduction on the 7,768 tests processed in Q3 23.

The fall was led by US test volumes which were down 17.7% on Q2 24 at 6,040 and down 8.9% on Q3 23, while the number of clinicians ordering the test in Q3 24 fell to 1,016 from 1,147 in the prior quarter and 1,082 in Q3 23.

Tests per clinician were down on the prior quarter, but in line with seasonal expectations over the quarter which included Christmas and Thanksgiving holidays. A new metric of sales force efficiency, introduced today, measures the average sales by the average sales FTE² in each quarter. This has increased over the last two quarters despite the current headwinds.

Test volumes in the Asia Pacific in Q3 24 were 1,132, down 4.9% on the 1,190 tests processed in Q2 23 and down 0.6% on the 1,139 tests processed in Q3 23. The move largely reflected seasonal variations in the relatively mature New Zealand market. 

Further details on test volumes and other developments in the quarter are included in the investor update released today.

View the Investor Update.

¹ The Sales Team includes Regional Sales Directors, National Accounts Executives, and Account Executives.
² Average Sales FTE includes quarterly average total head count of Regional Sales Directors, National Account Managers and Account Executives.