Pacific Edge's run halted

By LIAM DANN

Otago's Pacific Edge Biotechnology, which has seen its shares triple in value in the last six weeks, yesterday reported a loss of $2.65 million for the year to March 31.

The result was ahead of the budgeted loss of $2.8 million and an improvement on the $3 million loss the year before.

Revenue was $197,000, up from $88,000 the year before.

Shares in Pacific Edge dropped back 5c after the result to close at 45c.

The fall brought to an end a golden run in which shares more than tripled in value from just 14c on March 15.

The rapid rise was fuelled by news two weeks ago that the company was on the verge of a breakthrough deal with a large Japanese pharmaceutical company.

Chief executive David Darling said Pacific Edge had signed a "heads of agreement" with the Japanese company.

This was a significant step that should lead to the development of diagnostic kits, he said.

Pacific Edge, which grew out of research at Otago University, is developing ways to detect cancers early, to predict patient responses, and how best to manage the disease. It hopes to find blood tests for stomach, bladder, colorectal and endometrial (uterine) cancers which would avoid the need for painful probes.

The company says it has funds for its planned programmes.