Pacific Edge's (NZE:PEB, ASX:PEB) Australian and New Zealand shares tumbled to all-time lows after the company received confirmation that its flagship Cxbladder test would no longer be covered by a US Medicare contractor.
In a Monday filing with the Australian and New Zealand bourses, the cancer diagnostics company called the decision "flawed" and said that Novitas "continues to misunderstand the current standard of care in evaluating hematuria patients."
Novitas is the Medicare administrative contractor with jurisdiction for Pacific Edge's US laboratory.
The company said work is underway to cut its expense base until it regains reliable Medicare coverage and that it is "well placed" to fund the re-coverage process.
If not challenged, the finalized decision would become effective 45 days from the date of publishing, which means reimbursement of Pacific Edge's Cxbladder tests would end on Feb. 23.
Pacific Edge's shares plunged 54% in Australia and by 55% in New Zealand in recent Monday trade.
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