PACIFIC EDGE LIMITED — Capital/Financing Update 2020

Apr 6, 2020

6 April 2020

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PUBLIC HEALTHCARE PROVIDERS INCREASE COMMERICAL USE OF CXBLADDER

• Counties Manukau Health and Waitematā DHB add second Cxbladder test to mainstream commercial use

• Use of Cxbladder by Counties Manukau and MidCentral DHBs for in-home testing for bladder cancer has commenced for some patients.

Cancer diagnostics company, Pacific Edge Limited (NZX:PEB), advises that two of New Zealand’s largest public healthcare providers – Counties Manukau Health and Waitematā District Health Board - are extending their commercial use of Cxbladder. Together, these two District Health Boards cover a population of more than 1.1 million people (approximately 23% of New Zealand’s population). Pacific Edge expects this will result in an increase in the number of tests performed by its New Zealand laboratory.

Pacific Edge also advises that two public healthcare providers in New Zealand (Counties Manukau Health and MidCentral DHB) have started using Cxbladder for in-home testing for bladder cancer as a solution for their patients during the COVID-19 lockdown.

Counties Manukau Health

Counties Manukau Health is one of New Zealand’s largest public healthcare providers serving a population of approximately 570,000 people. It has been commercially using Cxbladder Triage since August 2018 to assess patients with blood in their urine (a key indicator of bladder cancer) to determine if they need further evaluation. Since adoption the use of Cxbladder Triage has resulted in over half of their patients avoiding a urology specialist appointment or having to undergo an invasive and expensive cystoscopy procedure[1] .

Counties Manukau Health has now expanded its commercial use of Cxbladder to include Cxbladder Monitor. Cxbladder Monitor was developed for those patients being monitored for the recurrence of bladder cancer. Bladder cancer has a very high recurrence rate and people living with bladder cancer need to present up to four times per year to be checked for recurrence of the disease with cystoscopy. As a result, bladder cancer carries the highest per-lifetime, per-patient cost of any cancer, with more than 60% of the total cost attributable to surveillance and recurrence.

Waitematā District Health Board

Pacific Edge has entered into an agreement with Health Source New Zealand Limited (the procurement services company representing the Northern Region District Health Boards) to provide its suite of Cxbladder cancer diagnostic tests for the detection, management and monitoring of bladder cancer patients to the Waitematā District Health Board (WDHB). WDHB will now add the commercial use of Cxbladder Triage, to its existing use of Cxbladder Monitor.

WDHB is New Zealand’s largest public healthcare provider serving a population of 630,000 people located on Auckland’s North Shore, Waitakere and Rodney districts[2] . Under the new WDHB program, all patients with haematuria will now first receive a Cxbladder Triage test which, when combined with the patient’s imaging results,

1 https://www.countiesmanukau.health.nz/news/bladder-cancer-pilot-producing-results/

2 https://www.waitematadhb.govt.nz/about-us/about-dhbs/

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will inform the urologist as to whether further testing and invasive procedures are required. Recent published evidence showed that Cxbladder Triage successfully reduced the number of cystoscopies by more than 30%[3] . This means that many patients can now be quickly and safely discharged back into the care of their GP in the community and will not require a urology specialist appointment or have to undergo an invasive and expensive cystoscopy procedure.

Dr Madhu Koya, Clinical Director of Urology at Waitematā DHB said: “Including Cxbladder into the pathway for haematuria referrals is aimed at improving the quality of care for our patients and clients. For many patients, they will get peace of mind from knowing they don’t have bladder cancer without having to go to a hospital clinic appointment and have an invasive procedure. The added benefit is that the patients that we do see in clinic will be seen sooner, since Cxbladder Triage has already ruled-out many of the referrals. This is all about what is best for the patient.”

Public healthcare providers in New Zealand commence the use of Cxbladder for in-home sample collection

Counties Manukau Health and MidCentral DHB (who combined serve a population of approximately 805,000 people) are now dispatching the Cxbladder test sample systems to patients at home, for in-home collection of their urine sample and return to the Pacific Edge laboratory by courier. Based on their Cxbladder results, many patients can have a cystoscopy procedure deferred to a later date. This means that many urologist appointments and procedures will be avoided at a time when public healthcare resources are being prioritised and people are being asked to ‘stay at home’.

Dr Christophe Chemasle, Urology consultant at MidCentral DHB, said: “For bladder cancer, the majority of patients are over 60 years of age, with a high proportion over 70 years, and at higher risk of COVID-19. Cxbladder makes a difference by being able to collect the patient sample from their home. It means patients don’t have to travel to the clinic, and it frees-up essential healthcare services.”

CEO of Pacific Edge, David Darling, said: “The clinical utility provided by the suite of Cxbladder tests is being highlighted under the exceptional circumstances we are now living under during the COVID-19 global pandemic. Public healthcare providers are grappling with how to provide the best care for urology patients who are scheduled to visit the clinic regularly as part of their ongoing management of bladder cancer. We are now seeing a variety of essential healthcare activities being delivered in new ways, such as virtual clinics and telehealth. Cxbladder is proving itself to be a unique solution in these situations as demonstrated by the commencement of in-home sample collection by two public healthcare providers in New Zealand.”

ENDS

For more information contact:

David Darling, Chief Executive Officer, Pacific Edge Ltd, P: +64 (3) 479 5800

OVERVIEW www.pacificedge.co.nz www.pacificedgedx.com

Pacific Edge Limited (NZX: PEB) is a New Zealand publicly listed, cancer diagnostic company specialising in the discovery and commercialisation of diagnostic and prognostic tests for better detection and management of cancer. Its Cxbladder suite of non-invasive, simple to use and accurate diagnostic tests provide actionable results, and better detection and management of

3 Davidson et al, Inclusion of a molecular marker of bladder cancer in a clinical pathway for investigation of haematuria may reduce the need for cystoscopy, New Zealand Medical Journal; June 2019

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urothelial cancer. The company is developing and commercialising its range of Cxbladder bladder cancer tests globally through its wholly owned central laboratories in New Zealand and the USA. The company’s products have been tested and validated in international multi-centre clinical studies.

ABOUT Cxbladder Triage www.cxbladder.com

Cxbladder Triage combines the power of the genomic biomarkers with additional phenotypic and clinical risk factors to accurately identify patients with haematuria who have a low probability of bladder cancer and may not require a more extensive urological evaluation. Cxbladder Triage is a tool for use by clinicians and physicians in primary evaluation of patients with haematuria and is intended to reduce the need for an expensive and invasive work-up in patients who have a low probability of having urothelial carcinoma.

ABOUT Cxbladder Detect www.cxbladder.com

Cxbladder Detect enables the non-invasive detection of bladder and other urinary tract cancers from a small volume of a patients’ urine. Cxbladder Detect provides clinicians with a quick, cost effective and accurate measure of the presence of the cancer as an effective adjunct to cystoscopy.

ABOUT Cxbladder Monitor www.cxbladder.com

Cxbladder Monitor allows urologists to monitor bladder cancer patients for recurrence of the disease. Bladder cancer has a recurrence rate of 50-80% and requires life-long surveillance. Cxbladder Monitor accurately identifies patients with a prior history of urothelial cancer (UC) whose Cxbladder Monitor score shows that they have a low probability of recurrent urothelial carcinoma. Cxbladder Monitor is designed to be used as the preferred adjunct test to cystoscopy in the management of patients for ongoing evaluation of recurrent bladder cancer.

ABOUT Cxbladder Resolve www.cxbladder.com

Cxbladder Resolve identifies those patients who are likely to have aggressive or more advanced bladder cancer. Cxbladder Resolve, when used as part of the primary evaluation of haematuria and/or in conjunction with other Cxbladder tests (Triage, Detect), is designed to assist clinicians by accurately identifying patients with a high probability of having high grade or late stage bladder cancer, for whom alternative or expedited treatment options may be warranted, or who can be prioritised for further investigation in high throughput settings.

Refer to www.cxbladder.com for more information.